IOS14’s New Opt-in Requirement: What Does it Mean for Your Advertising Strategy?

18 January 2021

With the launch of the new iOS 14 update, Apple is also expected to roll out a new privacy opt-in requirement in 2021. The new privacy regulation will require brands to explicitly request user consent in each app before tracking data and collecting information. 

Users will be able to see what type of data and tracking information each app is trying to collect on the app’s product page. Specifically, if your business uses third-party codes such as analytics and advertising, you will need to explain which data you collect and how you will use it. An example of tracking includes displaying targeted advertisements collected from websites external to your company, amongst others. 

To incentivize users’ opt-in, marketers will need to educate consumers about the added value of data tracking to obtain tailored ads.

Why is This Relevant to Your Business?

Data is extremely valuable information that provides clear insights into customers’ needs and behavior, the marketing campaigns your customers respond the best to, the consumer journey on your website, and many more. Up to now the cost of apps has been often offset through advertisements and by selling user data to third parties. These limitations can have a dramatic effect on the digital marketing lifecycle, potentially driving down advertising revenues. 

A long-term consequence of this update can be a shift to a paid business model in which consumers will have to pay to download and use apps, while free apps will provide iOS users with less personalized experiences. However, brands will still be able to use contextual targeting to deliver effective ads to their users. 

Although the iOS 14 update has the potential to impact your advertising strategy negatively, there are a couple of things you can do to avoid a loss of revenue due to the new Apple update.

Recommendation #1- Clear Privacy Policy

Firstly, research shows that over 70% of consumers are open to opting-in for an ad experience tailored to each users’ needs. Specifically, users tend to enjoy advertisements from brands they have experience with and trust. Establishing a transparent and trust-based relationship can enable your company to have a high opt-in rate, which will become a strong competitive advantage allowing to collect the desired data. Hence, advertisers should provide users with a clear and transparent privacy policy about data usage and its added value.

Recommendation #2 – Persuasive Internal Prompt

A second recommendation is to design a persuasive internal prompt to request user consent before the iOS 14 pop-up. This prompt can be fully customized and designed to explain to your users the added benefits of having data collected, with the ultimate goal of attracting users’ interest and increasing the chances of getting a high opt-in rate.

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