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Assessing the Impact of IDFA Deprecation
08.26.20 | Bianca Blottie, Team Lead, Decile

With the release of iOS 14 expected mid-Sept, Apple will require all app developers self-report on their privacy practices. Users will see summarized privacy information in the App Store prior to downloading, and they will be able to control the data an app is collecting with in-time permissions notifications. Given the opportunity to easily opt-out of tracking, IDFAs are expected to significantly drop.

In what we see as a continued “cookie-less” world, Apple is reinforcing their own privacy stance with the deprecation of id based tracking. Apple is essentially taking a previously somewhat hidden setting, LAT (Limit Ad Tracking), and bringing it to the forefront to users for individual app downloads. Marketers will need to quickly assess customer identifying tactics and forecasting models to keep up with the impending transitions.

Our sister company Decile, is the first customer data and intelligence platform proven to help companies find their best customers and drive lifetime value. The company’s unique approach to harnessing the power of customer data is more important than ever, as signals become harder to track and 1st party data becomes the single source of truth for marketers.

KEY COMPONENTS OF THE IDFA DEPRECATION

  • USER PERMISSION TO TRACK: Users will be presented with two options on downloading apps: “Allow tracking” or “Ask app not to track.”
  • IDFA’S ≠ ANALYTICS IDENTIFIER: Apple is confirming that IDFA is not to be used as an analytics identifier by app developers. Advertisers have up to this point, used IDFA’s to track data to deliver customized advertising.
  • ATTRIBUTION THROUGH SKAdNetwork: Apple’s owned advertising networks (SKAdNetwork) will provide access to information that identifies the specific app from where installations occur.

WHAT DOES THIS MEAN FOR ADVERTISERS?

  • MEASUREMENT: Historically, ad servers have used IDFA to match users for targeting and for measurement in third-party apps. 3rd-party ad servers that don’t connect direct identifiers to users (like Facebook does) will no longer measure data at the individual level. Without a bridge of sorts to link mobile IDs back to ad networks, attribution on mobile will begin to rely more on statistical analyses of available data from the segment of opted-in users.
  • TARGETING: Any first-party data collected and linked back to mobile IDs can be used within ad networks to create strong lookalike audiences and allow for effective personalization. Decile’s capabilities allow the usage of this first-party engagement data to create segmentation and clusters. Remarketing and Event Optimizations will be ineffective on ad servers unless they currently employ user-specific identifiers (phone number, email, etc).
  • OPTIMIZATION: App developers should begin or continue to require users to register accounts using first-party identifiers. Due to the drop in ad personalization, CPMs are expected to rise in the near-term. A media mix model supported by predicted data science will allow marketers to spend efficiently on mobile and bypass complications caused by attribution, limit ad tracking, and id deprecation.

KEY COMPONENTS OF THE IDFA DEPRECATION
The deprecation of IDFA solidifies the push for consumer privacy across platforms and in accordance with changing legislation. There will be a greater reliance on first-party customer lists in all digital advertising platforms. Advertisers and marketers will need to adjust their media mix as privacy legislation advances across the country, and browsers and devices continue their privacy-as-a-product strategies.

To plan for any impact towards performance and measurement, advertisers can no longer rely on platform-provided products. They must have a tool set that supports segmentation, analytics, compliance, and onboarding.

For more information about how Decile’s customer data and analytics platform can help brands drive profitable growth and navigate a world with fewer digital signals, reach out to sales@decile.com.

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