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The iOS 14 ad tracking update isn't just a "reporting" issue that will be solved by advertisers having to make better creative to drive quicker purchases or require us to be stricter with attribution. Here's why...
Of the 230M people in the US on FB, about 52% of those people access via iOS 14 or higher (65% if you look at all iOS 14 versions).
When Apple introduced it's location tracking prompts in iOS 13, opt-in rates to share data with apps when they’re not in use dropped from close to 100% to often below 50%. (source: https://digiday.com/media/apples-new-privacy-features-rattle-location-based-ad-market/)
If people opt out of ad tracking at the same rate on Facebook because of the below forced opt-in prompt, that means Facebook is losing out on signal from about 60M people or about 26% of their US audience in non-FB apps and websites.
While FB still has in-app signals, losing a 1/4 of your most valuable signals (i.e. transaction data) across apps and sites, is crucial to their success delivering business outcomes for their advertisers (especially when these revenue signals are driven more on iOS than Android).
Improving your website with CAPI isn't enough as well. Facebook uses online behavioral advertising across all the sites and apps that use their pixel and SDK to fuel your own growth.
e.g. This is why you'll see ads from 3 couch companies. Facebook knows you're in market. Creative plays a part to help you stand out from the other two companies vying for your attention.
The strength of the pixel and SDK is in how many websites and apps have it set up (over 4M and 6M respectively).
If Snap's pixel and SDK had the same level of widespread support, their ads optimization would be lightyears stronger (bye-bye 50 events to unlock optimization).
If Snap's pixel and SDK had the same level of widespread support, their ads optimization would be lightyears stronger (bye-bye 50 events to unlock optimization).
If all 4M+ websites and 6M+ apps don't incorporate CAPI ASAP, there will be a massive signal loss in the algorithm for the most important data signals - transactions.
Even if all advertisers do implement CAPI, Facebook still loses out on key intent signals that CAPI can't capture because identity hasn't been passed through yet (e.g. add to carts, time on site, etc.)
Better creative won't help with optimization if there's not enough data to optimize for.
Stricter reporting won't solve for a lack of optimization signals happening across the web and in other apps to fuel your success.
Stricter reporting won't solve for a lack of optimization signals happening across the web and in other apps to fuel your success.
While advertisers should be concerned, there's no need to go full panic mode quite yet.
I explain why here: https://twitter.com/mrahmey/status/1339320403538436103
I explain why here: https://twitter.com/mrahmey/status/1339320403538436103
