How the altering privateness is altering the advertising panorama

Last year, Apple has announced a new privacy policy Force apps to ask permission to track users for promotional purposes. App tracking transparency was introduced as part of iOS 14.5 and requires apps to request permission from users before they can be tracked across other apps and websites.

If you’ve used apps on your iPhone before, they’ll track you through other apps and websites to target you with personalized advertisements later.

At the time Apple was announcing its new guidelines, Facebook was running a campaign (a full-page newspaper ad) entitled “Apple vs. the free internet,” claiming that changes in Apple’s mobile software would harm small businesses and consumers , “Changing the Internet As We Know”. it – for the worse. “

According to a Financial Times report Last week released social media giants that rely heavily on advertising as a source of income, such as: Snapchat, Facebook, Twitter, and YouTube lost around $ 9.85 billion in advertising revenue following Apple’s changes to its privacy practices.

Meanwhile, Apple reported a “record” quarter for its advertising business as it publicly fought for privacy. Tim Cook, Apple’s CEO, said, “We firmly believe that privacy is a fundamental human right. And that’s our motivation there. There is no other motivation. ”

The public battle between two of the world’s largest tech companies is testament to the huge impact of moving to a world where privacy is paramount.

People want privacy

People around the world expect more privacy and control over their data. App tracking transparency requires apps to get user permission before tracking their data.

It seems that most of the users are unwilling to grant these permissions because most of the users have logged off. The percentage of users who chose to “Allow Tracking” was 15% globally in May 2021, and only 5% of daily users in the US with iOS 14.5 had chosen it to date Flurry Analytics Data.

Consumers demand privacy and ownership of their digital identity. Apple gave people a choice and people chose privacy.

If you think it’s just Apple, think again

The biggest players on the internet are announcing updates to their data collection policies to improve privacy and consumer transparency.

The third-party cookie as we know it has been in the last few days.

A majority of Marketer use third party cookies in their digital campaigns and should get ready to change privacy.

Governance and data protection regulations such as GDPR in Europe, LGPD in Brazil, CCPA in California (USA) and PIPA in South Africa are already enforcing data protection requirements online.

While these advances empower users, they also impact marketers’ digital advertising efforts.

Ads are getting more expensive

Ads are proving less effective because of app tracking transparency.

Take, for example, a brand that advertises a product for men, and was used to get a customer for $ 5 ad spend for 1,000 men.

To get the same 1,000 men now, the brand will probably have to show 2,000 people because we no longer know who a man and who a woman is.

In other words: These acquisition costs doubled and resulted in a loss of earnings of 50%.

As data is no longer available to target, ad accuracy is greatly reduced, which increases the cost of increasing advertiser performance.

As you can see in this example, the social media giants didn’t just lose money. Companies that use advertising as their primary acquisition strategy saw costs increased and lost money as well.

Well what now? What can I do to customize and maintain my brand’s results?

Privacy changes mean that First-party dates are no longer just an option: It has to be part of your strategy.

With an uncertain future for the online advertising industry, it is time for brands to explore other ways to reach their audiences high quality content.

A future-proof successful marketing strategy should be the focus how to get high quality first party data Use your channels. This way you avoid data protection problems and have complete control over your data.

It is not true that people do not want to share their data with companies. They can give you details as long as they can trust in you and See the value in your offers. We’re talking about building a real relationship between your customers and your brand. This is the change!

Therefore organic traffic, SEO and email are becoming increasingly important in combination with high-quality content.

By understanding your buyer’s journey and mapping the content accordingly, you can create the right formats to reach your audience at every stage of the funnel.

The companies that win the race to use first-party data through their own channels will take the lead first in the new era of privacy and will have a huge advantage over the competition.

Interactive content can change your game

Most brands don’t focus on collecting first-party data like it could with the technology available today. Facebook ads, in particular, gave them a cheaper way to target people.

As a lot of marketers decided to use it, the cost started to go up. But now let’s talk about losing some of the most important things about ads: the targeting intelligence.

How can you solve that? Offer your customers real added value through commitment interactive experiences is a great way to collect first party declared data and stay independent of the advertising industry and third party cookies, for example.

Check out our Interactive benchmark report 2021 to learn more about the trends in interactive content and their benefits for marketing

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