How could brands react as Apple’s privacy changes hamper online advertising?

Estimated reading time: 2 mins

Since their privacy changes in 2021, Apple boasts that their new features help users control and monitor apps’ use of their data. This update is particularly significant for online advertising because in terms of smartphones, Apple iOS takes up  13% of global market share. But what does this mean for online advertising? Read on to find out.

Third party data protection

Tracking prevention in the mail app prevents invisible data being collected about the user, including when they open an email. Their IP address is also masked so it can’t be linked to their location or other online activity. Users have the ability to click ‘do not track’ when they open apps, and this hampers online advertising because it prevents trackers from being able to build profiles about users that are valuable when it comes to targeting ads to certain users. Users are becoming more aware of how brands use their data, making it harder than ever for companies to collect data on their customers. 

One of the ways that brands could react to this is by collaborating with non-profit organisations and third-party expertsto educate consumers and users about their data and protection. This change from Apple means that people can now opt out from third party data collection with the click of a button. Educating people about how their data is used may encourage them to either share certain data with companies which will help with personalised adverts, or to be more conscious of their data with certain companies. 

App manufacturers – Facebook, Snapchat and Instagram

These apps will have to seek consent when trying to collect personal data to create profiles of users. Facebook said its revenue would have grown sequentially in the September quarter if not for the Apple ad changes. Ads have been made far less effective at targeting potential customers as a result of these privacy changes. 

These changes benefit Apple’s own advertising products such as Apple Search Ads because marketers are turning to it for mobile adverts to drive app installations. 

Facebook’s CEO Mark Zuckerberg said: “As Apple changes make e-commerce and customer acquisition less effective on the web, solutions that allow big businesses to set up shop right inside our apps will become increasingly attractive and important to them.” 

Different forms of advertising 

Apple’s privacy changes are leading brands to shift to alternative marketing tactics. 

The use of roadside screens is an especially effective way of reaching wide audiences. Roadside billboards are useful when they appear in high traffic areas because they’re able to capture the attention of large numbers of people. Research shows that when people walk, drive or ride by roadside screens approximately 75% of people do consciously look at them. 

In a similar way to online advertising, advertisers can match the location of the screen to meet a large percentage of their target audience. Roadside screens are excellent at building positive brand images and increasing brand awareness because they can be changed so easily and are so effective at engaging viewers. With all this in mind, you will now have an insight into how brands could react as Apple’s privacy changes, and how these changes might hamper online advertising.

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