What Apple’s iOS 14 Release Means For Advertising

Apple’s iOS 14 update in 2020 brought forward a wave of privacy-focused initiatives, significantly impacting digital advertising. Understanding these changes is crucial for advertisers, marketers, and business owners to navigate the evolving digital landscape effectively. If you’re wondering what Apple’s iOS 14 release means for advertising and how your company can adapt, here’s what you need to know.

Key iOS 14 Changes Affecting Digital Advertising

Apple’s iOS 14 update introduced several significant changes that have reshaped how advertisers track, target, and measure user engagement.

App Tracking Transparency (ATT) Framework

With iOS 14.5, Apple required all apps to request explicit user permission before tracking their activity across other apps and websites. This change disrupted the traditional approach to data collection, where advertisers could previously rely on automatic tracking through the Identifier for Advertisers (IDFA).

What This Means for Advertisers

• Users must opt-in. When opening an app, users receive a pop-up asking whether they want to allow tracking. If they decline, that app loses access to their data.
• Opt-out rates are high. Industry reports indicate that up to 96% of U.S. users have opted out of app tracking, limiting the amount of user data available to advertisers.
• Less precise ad targeting. As fewer users opt-in for advertiser tracking, marketers have less data, making it hard to deliver personalized ads to target audiences.

Limited Access to Identifier for Advertisers (IDFA)

Before iOS 14, IDFA was a crucial tool that allowed advertisers to track users across different platforms for retargeting and attribution. With Apple’s privacy changes, access to IDFA is only available when users explicitly allow it—something most users decline.

Impact on Digital Advertising

• Retargeting is becoming less effective. Businesses can no longer track users who visit their website or app unless they opt in.
• Attribution challenges. Without IDFA, it is harder to determine which ads led to conversions.
• Increased reliance on Apple’s SKAdNetwork. Apple introduced the SKAdNetwork, a privacy-friendly attribution system offering aggregated ad performance rather than user-level data. While this provides some insights, it lacks the detailed tracking that advertisers were previously accustomed to.

One study showed that before the update, about 70% of IOS users shared their IDFA with app publishers. However, after the iOS 14 update, it was estimated that this number would drop from 10% to 15%.

Changes to Facebook & Social Media Advertising

One of the most impacted platforms, Facebook, introduced new changes in response to Apple’s privacy policies. Advertisers on Facebook now face:

• Limited event tracking. Businesses can track only eight conversion events per domain, restricting their data collection depth
• .Delayed and aggregated reporting. Instead of real-time insights, Facebook now provides delayed, anonymized data, making campaign optimization more challenging.
• Decreased audience sizes. Without tracking information, the size and customization of targeted ad audiences are reduced. This can lead to under-performing Facebook ad campaigns.

Privacy-Focused Web Browsing

Apple’s Safari browser also expanded its Intelligent Tracking Prevention (ITP) system, further limiting third-party cookies. This move was made to create better transparency and protection for users. However, it requires businesses to find alternative ways to reach audiences. 

Challenges Advertisers Face in a Privacy-First Era

With these changes in place, businesses and advertisers must adapt to several new challenges.

Reduced Audience Targeting Capabilities

Targeted advertising relies on rich data about users’ behaviors, interests, and interactions. With less behavioral data on audiences, marketers will have a harder time determining users’ needs and desires, possibly leading to less precise ad placements and lower conversion rates. 

Attribution and Measurement Difficulties

Detailed tracking enabled businesses to connect the dots between ads and sales. Without this, marketers and advertisers will face difficulties in measuring the effectiveness of campaigns. 

Greater Dependence on First-Party Data

Since third-party data is becoming a thing of the past, businesses must focus more heavily on collecting first-party data by garnering consumer interactions. This requires investments in CRM systems, email marketing, organic social media, and other owned media strategies.

How Businesses Can Adapt to iOS 14’s Advertising Changes

Though these Apple updates present challenges, businesses can adopt more privacy-friendly advertising strategies to stay relevant. Here are several ways companies can adapt.

Focus on First-Party Data Collection

With third-party data becoming less available, businesses should prioritize collecting data directly from users. Strategies include:

• Encouraging users to subscribe to newsletters or create accounts to access exclusive content.
• Offering value-driven incentives such as discounts, loyalty programs, or premium content in exchange for user data.
• Using interactive tools like quizzes and surveys to gather insights into customer preferences.

Leverage Contextual Advertising

Instead of relying on user data, contextual advertising places ads based on the content of a webpage rather than the individual user. This strategy helps businesses reach relevant audiences without needing personal tracking.

Optimize for Apple’s SKAdNetwork

Apple’s SKAdNetwork is the primary way to measure ad performance on iOS devices post-iOS 14. Businesses should:

• Ensure their ad platforms are fully integrated with SKAdNetwork.
• Use aggregated reporting to analyze ad performance over time.
• Experiment with broad targeting since precise audience segmentation is now limited.

Diversify Marketing Channels

Relying solely on Facebook or Instagram ads is no longer a sustainable strategy. Businesses should explore:

• Search engine optimization (SEO) to drive organic traffic.
• Google Ads, which are less affected by Apple’s privacy changes.
• Influencer marketing to reach audiences through trusted voices.
• Email marketing to engage customers without relying on external ad platforms.

Prioritize Customer Relationships & Brand Loyalty

As the era of hyper-targeted ads is fading, businesses should shift their focus to creating high-quality customer relationships and building community engagement. This is accomplished through quality customer service, engaging organic social media, and creating valuable content.

Apple’s iOS 14 update has reshaped the landscape of online advertising, challenging businesses to rethink how they track, target, and engage their audiences. While the loss of detailed user data presents obstacles, it also encourages a shift toward privacy-conscious marketing strategies prioritizing first-party data, contextual advertising, and brand loyalty. By adapting to these changes, businesses can continue to run effective and ethical marketing campaigns in an increasingly privacy-focused world.

We Can Help!

Effect Web Agency provides web design and marketing services for local, regional, national, and international clients. Contact us to learn how you can improve your online visibility.