Apple's introduction of AppTrackingTransparency in iOS 14.5 changed how the mobile app industry approaches monetization and measurement. Here’s what you should know about the changes, along with best practices for mobile publishers and advertisers.

Advertising on Facebook has become more challenging due to Apple’s AppTrackingTransparency framework in iOS 14.5. Here’s how advertisers are adapting their strategies in the post-IDFA reality.

The rollout of AppTrackingTransparency (ATT) in iOS 14.5 effectively deprecated the primary way publishers and advertisers track users on iOS and changed how the mobile ad industry approaches monetization and measurement.

Apple earnings show how much its ad business has grown amid iOS 14.5: App Store search ads have benefited greatly from its privacy update—something advertisers have known for a while and regulators won’t be able to ignore for long.

Since Apple’s AppTrackingTransparency (ATT) framework in iOS 14.5 took effect in late April, Facebook has experienced steadily worsening data loss as iOS users have adopted the update.

Apple’s privacy changes in iOS 14.5, which rolled out in April, had only a “modest” impact on its business, per Alphabet’s Q3 earnings call. Google’s access to first-party data means its ability to track and target ads was relatively unaffected, making its platforms especially attractive to marketers who were left scrambling after iOS 14.5.

The biggest threat to ad targeting is, of course, Apple’s iOS 14.5 update, and Snapchat warned in March that it could limit how brands target customers via Snap Audience Match. The integration with Salesforce could help mitigate some of the impact of iOS 14.5 and other privacy changes affecting digital platforms. TikTok.

With iOS 14.5 adoption now at 96% among US social media app users, just 28% of those shown an ATT prompt on any social media app have opted into tracking, per data from mobile measurement partner AppsFlyer as of November 23, 2021. On April 26, 2021, Apple’s AppTrackingTransparency (ATT) framework went into effect with the rollout of its iOS 14.5 update.

In interviews, mobile advertising leaders reported that some mobile advertising may have shifted to the web as a result of Apple’s rollout of AppTrackingTransparency (ATT) in iOS 14.5. Despite that, we still expect the in-app share of mobile advertising to continue to grow.

Businesses including Meta, Snap, and YouTube have already cited losses from Apple’s launch of AppTrackingTransparency in iOS 14.5, and Meta estimated that the privacy changes could cost it $10 billion just in 2022. Citing solutions: The number of companies offering identity solutions as consumer privacy concerns ratchet up has expanded.

Prior to iOS 14.5, Apple led Android in terms of in-app advertising (IAA) revenues. By June 2021, Android had overtaken Apple, capturing 10.2% of IAA revenues versus Apple’s 9.7%, a gap that has continued to widen. While Google plans to introduce more privacy tools for Android, it has said it will remain opt-out versus opt-in. Desktops and Consoles Widen Target for Interstitial Ads.

Facebook earnings: The company's Q2 earnings could shed light on the effects of Apple’s iOS 14.5 update, but it’s still on track to clear $100 billion in revenues by the end of the year.

The trend: Apple’s launch of AppTrackingTransparency (ATT) in iOS 14.5 has started to reshape digital advertising and is affecting mobile app publishers’ and advertisers’ monetization models, budget allocations, and measurement strategies.

The trend: Apple’s launch of AppTrackingTransparency (ATT) in iOS 14.5 has started to reshape digital advertising and is affecting mobile app publishers’ and advertisers’ monetization models, budget allocations, and measurement strategies. Our recently published report had the following findings:.

On today's episode, we discuss the most interesting findings from Facebook's Q1 earnings, how Apple’s iOS 14.5 update might affect its business, and where it sits among the digital ad giants. We then talk about how many people are using Facebook Dating, measuring Facebook's "potential reach," and Facebook Reality Labs' upcoming smart wristband. Tune in to the discussion with eMarketer principal analysts at Insider Intelligence Debra Aho Williamson and Nicole Perrin.

For example, Apple’s iOS 14.5 update in 2021 started requiring users to opt in to allowing apps downloaded from its store to collect their data, and Google followed suit earlier this year. Rising 5G Connections Will Drive Adoption of Bigger, More Complex Apps. The low latency of 5G networks supports better functionality for even the most sprawling apps.

Apple’s 2021 privacy updates have advertisers approaching iOS with caution and accelerating their investment in Android. Last May, soon after the changes rolled out, US Meta ad spending rose at about the same pace on both types of devices. By the end of December, growth on iOS had slowed to 3% year over year, while Android’s soared to 101%.

eMarketer was pleased to moderate a Tech-Talk Webinar featuring AppsFlyer’s Chad Greenleaf, senior vice president, client services, and Barak Witkowski, vice president, product, along with Stash’s Tyler Pennell, vice president, growth. Together they shared valuable lessons learned throughout the iOS 14.5 readiness process, where the industry stands now, and best practices for a privacy-centric future.

eMarketer was pleased to moderate a Tech-Talk Webinar featuring AppsFlyer’s Brenda Chen, director of solutions architecture, and Royal Bank of Canada (RBC) Ventures’ Michael McCue, head of performance marketing. They discussed the solutions RBC Ventures put in place prior to iOS privacy updates, the results they’re seeing, and how their strategy is now evolving.

Apple ad spend dips: Mobile app install ad spending on iOS devices has dropped off since the arrival of iOS 14.5 and AppTrackingTransparency. Whether marketers permanently shift budgets to Android depends on how good Apple's alternative tracking frameworks prove to be.

Our Take: We expect perceptions of ad relevance on all social platforms will be in greater flux over the coming year following the impacts of Apple’s iOS 14.5 update, which all social platforms are experiencing to varying degrees. Marketers focused on precision targeting will be implementing paid social strategies to improve ad effectiveness and relevance.

Facebook has come to terms with Apple’s iOS 14.5 privacy update and is developing new tools to mitigate the potential impact on its ad business. At the same time, it’s building out new features, from Facebook Reels to Fantasy Games, to keep people engaging on the platform. What are the biggest developments for Instagram?

Apple iOS 14.5 tracking changes. Apple’s AppTrackingTransparency (ATT) initiative—the effects of which began mid-2021—made it hard for D2C brands to target their best audiences and know whether their ads were working. Meta and other social media companies were hit hard, resulting in a sizable loss of D2C budgets.

But another study, from Flurry Analytics (a unit of Verizon), found that just 5% of US iOS 14.5 users opted in to tracking. Flurry says its analytics tool is installed in more than 1 million mobile applications and says it has tracked daily opt-in rates through data from 2.5 million daily active mobile users.