The Digital Marketing industry is undergoing a seismic shift in its approach due to the rising barriers of data accessibility. The trigger point for the U.S. market lies in the shift made by Apple to provide App Tracking Transparency. This enables iPhone users to select whether they will allow apps to track their data across the device. With the rise of smartphone usage as the primary access point for the internet and multitude of apps, this creates a critical challenge for advertisers and app developers that have largely relied on advertising revenue as their business model and delivering the product/service for free to the end user. In the past, developers leveraged Apple’s Identifiers for Advertisers (IDFA) which provided aggregated usage data across apps. Back in 2020, Singular reported over 30% of iPhone users were opting out of ad tracking.
This dynamic creates an interesting shift for firms to consider new levers for driving growth as the number of users opting out of data tracking is forecasted to continue increase. This trend may drive new innovations in existing levers of customer led growth and product led growth in order to compensate for new gaps in data accessibility and ad targeting.
Reference Sources:
1) IAB State of Data 2022: https://www.iab.com/wp-content/uploads/2022/02/IAB_State_of_Data_2022_Master.pdf
2) Invoca Blog: https://www.invoca.com/blog/what-is-idfa-and-why-apple-killed-it-everything-marketers-need-to-know
3) Singular Article: https://www.singular.net/blog/limit-ad-tracking-privacy-checkup-in-2020/
No comments:
Post a Comment