Recently, Apple’s decision to implement App Tracking Transparency (ATT) and change the way the Identifier for Advertisers (IDFA) functions has been a topic of discussion within the advertising industry. The changes have raised concerns among advertisers, ad tech companies, and publishers about the potential loss of user data and revenue.
What is IDFA?
IDFA is a unique identifier assigned by Apple to each iPhone or iPad. It allows advertisers to track user behavior across different apps and websites, providing valuable data for targeted advertising. However, with the new changes, users will be prompted to opt-in or out of ad tracking, affecting the accuracy of data collection.
Impact on Advertisers and Publishers
The changes have created uncertainty in the advertising industry, with some companies fearing a decline in revenue due to reduced data collection. According to a study by Branch, only 25% of iOS users opt-in to ad tracking, which means advertisers could lose a significant amount of data. This has also raised concerns about the effectiveness of targeted advertising.
However, some experts argue that the changes may lead to a more transparent and ethical advertising industry. Advertisers may need to rely on contextual targeting rather than personalized targeting, which could lead to more relevant ads for users without invading their privacy.
In an interview with CNBC, Jonny Graham, CEO of the mobile marketing firm Yodel Mobile, stated that the changes could lead to a more level playing field for advertisers. He suggested that companies that relied on the IDFA for targeting may need to shift their focus to contextual targeting and creative optimization.
Overall, the changes to the IDFA have raised concerns in the advertising industry. While some fear a decline in revenue and effectiveness of targeted advertising, others believe it may lead to a more transparent and ethical advertising industry. Regardless, advertisers and publishers will need to adapt to the new changes and find new ways to reach their target audience.