The Apple iOS 14 update is affecting how service-based businesses achieve targeted advertising.
RealWork Labs has built a customer-centric ecosystem that relies on unaffected geo-targeted advertising for service-based businesses that allows business to market their business where their customers are and not only where their business sits.
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- AppTrackingTransparency (ATT): a context requiring users to consent before apps and in-app advertisers can use their customer data.
- SKAdNetwork (SKA): this removes user-level data and more granular data, both of which advertisers of all kinds depend on this data type.
ATT uses an identifier for advertisers (IDFA) to notify mobile users on iPhones prompting them to choose one of two options:
- Option one involves sharing phone activity and data with the app
- Option two is to opt-out of sharing phone activity and information.
It is similar to an “Accept Cookies” button but designed for applications. These apps are not platform-specific and can range in size from Facebook to a smaller industry-specific software app.
How the Apple iOS 14 updates could stifle small businesses
National studies indicate that around 40% of small companies use personalized ads to keep them alive during the COVID-19 pandemic. This statistic is important considering the rapid rate at which small and medium-sized businesses are closing due to unprecedented depressed economic conditions. Meanwhile, other companies are increasing their customized and branded ads, especially in the service-based business sectors. For Apple, the goal of the Apple iOS 14 update is user agency. But for platforms like Facebook, it signifies another roadblock for personalized ads.
Facebook calls to the prompt “discouraging,” stating it will “prohibit collecting and sharing information that’s essential for personalized advertising.”
Since small and medium-sized service-based businesses are already fighting to stay above water, increasing the number of barriers between business and buyer makes it more challenging to operate as a small business. There are a few exciting caveats in the update:
- Advertisers will be left in the dark concerning how many people have opted out of data sharing—making it tricky to build a comprehensive understanding of ad value.
- Advertisers cannot target or exclude ads based on engagement for users who have opted out of data sharing; these users will not have access to the personalized ads that businesses provide.
Apple iOS 14 update impacts Facebook Marketing
Facebook is modifying their engagement metrics so that now, advertisers can track a maximum of eight events for their targeted ads; this comes together with tweaks to Facebook tools like value optimization, dynamic ads, and developer APIs.
The Facebook update will directly affect service-based business advertising. But rest assured our innovative software solution addresses these issues by future-proofing your marketing with a robust geo-proof strategy.
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