Since September 2020, Apple has introduced strict transparency and privacy regulations for app data tracking and collection.
While many platforms have been affected by the changes, Facebook expects the disruption to tracking users across other apps and websites to cost its business $10 billion in 2022.
In the latest round of coverage on this issue, AdNews asks agencies how they are tackling the changes to targeting and measurement across digital platforms. From leaning in early on GA4 to collaborations with Meta, these are the solutions emerging this year.
Audience is key, with publisher collaborations yielding new solutions
iProspect digital performance lead Bonnie Dodemaide and Dentsu national head of paid search and social Andrew Macdonald
We have analysed many accounts and the biggest impact we see within client strategies are those that rely on pixel-based audiences and measurement. We have seen through Dentsu internal data audience size reductions of approximately 15-18%. The good news is we have not seen a negative impact on clients using first party data audience strategies, or those using broad prospecting targeting.
Meta now estimates that they have closed the underreporting of iOS web conversions from 15% down to 8% (using multiple estimation methodologies including conversion modelling). However, it’s important to note that the accuracy of conversion reporting will depend on following measurement best practices.
The optimisations we continue to implement are:
Audience Consolidation
There is a greater need to consolidate audiences with a lower volume of pixel events being passed back. Ad sets require 50 conversions per month to allow for machine learning.
Audience Builds
Building custom audiences is a priority, utilising clients first party data to remove the reliance on pixel-based audiences is key.
Measurement
Investigate measurement solutions that are resilient to cookies to maintaining campaign effectiveness such as Conversions API (server to server measurement) and MMM.
Reducing Signal Loss
In partnership with Meta, the dentsu team have built a tool (beta) that automates the auditing process and makes recommendations for improving signal strength such as advanced matching and server-side integration usage. It’s an exciting next step for us and a great example of agency x publisher collaboration to build solutions.
iOS optimisation must be balanced with broader privacy changes
Zenith head of digital (Melbourne) Vikki Pearce
2021 proved to be a pivotal moment when Apple pushed out their iOS14, 14.5 & 15 updates. Given the significant share Apple’s iPhone has of the AU market - roughly 55% of the mobile population – these changes are the first major wave to wash over the Australian media world that truly put our strategies and tactics to the test.
Ultimately iOS14.5 is just one component that advertisers and agencies are adapting to. Privacy changes are a much bigger picture and will fundamentally change the role of digital media in time. Right now, every client has a different type of reliance on IDFA’s in order to deliver their media objectives so most notably we have found that there is no one size fits all approach to how we now plan and execute a campaign.
Firstly, the data maturity level of each advertiser dictates the actions we take. For those that have rich first-party data and a solid tech stack in place our approach is very different to those that have little first-party data or do not have the right tech infrastructure in place to harness their data. These capabilities can range from a simple customer match in platform through to advanced custom bidding solutions and AI that leverages advertiser first-party data through CDPs.
Secondly, there are myriad options to explore that are relevant to different scenarios, because contrary to popular focus, Facebook isn’t the only aspect of our digital activity that is impacted (although granted it does make up a large part of it). Therefore we need to try and hone in on a couple of key focus areas when it comes to optimisations, such as how we are buying App inventory more broadly and the type of data partners we are connecting with to increase our volume of opted in audiences. For those that leaned in early on GA4 and GA360, there is a lesser impact which is allowing more advanced tactics to take shape, such as setting custom bidding goals to maximise specific on-site events.
2021 effectively became the year of the mobile that everyone has been waiting for, for the last 10 years, but in a different way to expected. While screen agnostic is still something brands need to embrace when it comes to presence and communication, the reality is that for campaign managers the way they structure a set-up of a campaign and the types of levers they pull to optimise a campaign look very different to a year ago. You can no longer set up a campaign to run across all devices in one blanket approach and optimise to the best performing placements. At the very least campaigns need to be looked at on a device, OS and inventory supply (i.e. Web v App) level to get a baseline understanding of delivery volume, cost and performance.
Naturally we are seeing delivery skew now to web and Android OS but that isn’t a long term sustainable solution either. What it does do though, is force us to be clear on what each campaign needs in order to achieve the media KPIs, and ultimately business objectives, so we can navigate this newly blurry world where previously reliable data points just aren’t visible any more. More importantly, it has also forced us to take a step back and look at the role of each channel more broadly. Channels that were previously sat in the “Action” part of our planning are now becoming more beneficial higher up the funnel, based on the dots that can be connected.
Adjusting optimisation on immediacy versus impact scale
Wavemaker national head of digital Dru Nho
As much as iOS 14.5 was a significant change for marketers, the implications of the update were apparent for quite some time, which should have allowed marketers to make the right adjustments beforehand.
At its core, the iOS 14.5. update has made marketers look at peripheral opportunities and data signals to maintain business growth in key channels. Many businesses have experienced a significant drop in attributable reach and conversion due to iOS 14.5, which in turn has meant that the media efficacy of key channels has declined. While all social platforms are impacted, Meta will suffer the most given its overall scale and majority share of market.
To mitigate this, we’ve adjusted our optimisation recommendations based on immediacy versus impact scale. The first three recommendations are implementational and somewhat tactical, while the rest require an organisational shift with the potential to deliver the greatest impact.
Operating system targeting
An immediate option is to switch targeting to weight towards Android devices. The latest IAB figures state that Android currently has a 40% share of the mobile market. Although ideally, you’d want to focus on both Android and iOS users, the fact that your iOS data will likely be incomplete or skewed can rationalise a shift to Android.
Platform basics
While Aggregated Event Measurement is limited to eight mobile conversion events, it is a basic optimisation that can be made immediately and can have sizeable impact in addition to domain verification, enabling the conversion AP and updating SDK integrations.
Get creative with Creative
Even though personalisation took a hit with the update, the application of DR-focused messaging – such as the use of promo codes or one-time-offers where relevant in creative – can drive additional page visits from mobile ads.
Diversify your channel mix
Be brave and look beyond Meta. There is an increasingly strong case to be made for marketers to diversify outside of Meta to connect with their audience. The benefits of trialling scalable alternate solutions far outweigh the benefits of continuing to exhaust Meta.
Redefine how you measure
A long-term optimisation is to review how you measure your digital ROAS. Any business reviewing their digital effectiveness in channel silos is stuck in the early 2000s.
Rely more on your own data
The pot of gold at the end of the rainbow is to leverage more of your own 1PD. In the absence of reliable and scalable 1PD, there are still other signals that can be used to connect with audiences.
For all the conjecture that iOS 14.5 has caused, it’s the jolt we needed to get our houses in order.
The double debate: time to get real on targeting
Switch Digital CEO Lee Stephens
Apple’s iOS14.5 changes were a big deal with the company publicly claiming they are facing “increased headwinds” in late 2021 as a result of the iOS update and other privacy legislation globally. Australia has one of the highest iPhone penetrations per capita of any country in the world.
The immediate impact was significant, with soaring costs for performance-based advertisers who rely on Facebook’s enormous daily reach and frequency. In response, Facebook introduced a relentless pop-up campaign promoting the benefits of opting-in to tracking for all its platforms and re-defined how Facebook’s conversions are defined and reported.
The reality for agencies and clients is that the level of targeting, in particular the ability to tightly target specific audiences has become more difficult and been removed entirely. An obvious example is the marketing of financial products, regardless of how benign the product may be. iOS 14.5 is not the only culprit for Facebook’s recent woes. Facebook itself has made changes that feel like self-inflicted wounds. Who hasn’t had to explain to clients the mysteries of getting their campaigns out of “learning”?
The March 2022 changes to Detailed Targeting settings were explained by Facebook as a response to the privacy expectations of their global audiences. While this might be true, Facebook’s response is to urge advertisers to rely on their AI and Conversions API as the solution to achieving previous performance. The available settings can be broadly interpreted by Facebook’s AI.
Only Facebook has the power to pull-off a strategic shift where advertisers globally will rely on Facebook’s proprietary technology to define what success looks like and how it is counted.
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