Weekly Digital Breakdown – 10.1.21
Weekly Digital Breakdown
Oct 01 2021
Ecommerce Marketers Are Feeling the Impact of Apple’s Privacy Updates
Ecommerce retailers are continuing to feel the effects of Apple’s privacy updates that were rolled out earlier this year. With users now being asked to consent to app tracking as part of Apple’s App Tracking Transparency (ATT), there has been a sharp decline in those willing to share their information. According to a recent study, the amount of users willing to opt-in fell from 73% at the start of 2021 to just 32% in June.
As a direct result of the limited targeting capabilities and inventory due to the smaller pool of eligible users, the cost of mobile ads continues to rise. In addition, the average cost-per-conversion (CPC) for ecommerce marketers has seen a significant increase of 200% for tracked users and 155% for non-tracked users since iOS 14.5 took effect in the spring.
This news comes on the heels of Facebook’s recent admission of underreported ad performance on iPhones dating back to February. The combination of these is leaving many marketers concerned about how the ongoing pursuit of privacy could stifle their advertising efforts.
Unfortunately for advertisers, prices are only likely to increase as we enter the holiday season and competition heightens. The impact to ad budgets may even cause some to reevaluate their media mix to get more for their money.
Google Makes Data-Driven Attribution Model the Default Option
As privacy continues to be the center of focus for users and big tech companies, Google will now utilize data-driven attribution as the default attribution model for all new Google Ads conversion actions. The shift will allow for a more accurate understanding of how each data touchpoint or interaction contributes to a conversion by utilizing advanced machine learning to compare ad influence on consumer decisions and identify patterns that can be applied to campaign optimizations for optimal results.
In the announcement, Google highlighted the advantages that come with a more data-driven approach for marketers. Advertisers will have additional insights into campaign performance to not only optimize bidding more effectively, but also leverage the data to choose the best attribution model for their business, which will help for long-term goals and performance metrics.
Google Ad’s machine learning attribution model comes as marketers are working to overcome privacy limitations to accurately evaluate campaign performance and optimization strategies. As far as better understanding full funnel user behaviors, this way of viewing attribution could help redefine best practices for many businesses.
Facebook Tests Updated Ad Format
Some Facebook users may soon notice a change on paid ads as the company begins testing the inclusion of additional advertiser details. Information such as business location, user check-ins, and page followers will scroll below the ad image. This is likely an effort to not only give brands more advertising space, but also increase transparency as it would be difficult for scammers to falsify these details.
In a time where credibility is of the utmost importance, the addition could really benefit small businesses who are legitimate but may not have built a strong social media presence. Details could also potentially be recalled for users who may see the ads but not click, leading to visiting the business’s online pages at a later time.
Facebook has been focused on improving ads for both retails and users benefits. With the recent additions of things like Why Am I Seeing This?’ ad information, which explains how and why an advertiser is targeting a user, the increased emphasis on transparency and data privacy are likely intended to retain users and ad dollars.