HOW TO OVERCOME THE iOS 14
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EXECUTIVE SUMMARY Earlier this year, Apple announced new Although the updates were originally set to data and privacy changes that will have launch with iOS 14 in September 2020, they substantive business implications for any were pushed back to 2021. Brands need to organization that advertises or operates take action now to avoid significant business on mobile. With these changes, Apple’s impact in the new year: identifier for advertisers (IDFA – a physical device ID that powers much of today’s 1. Providing value in exchange for customer mobile advertising) essentially becomes an data and handling that data responsibly will opt-in feature. give brands an edge in winning and keeping consumer trust. 2. Brands must update their data activation strategy to account for changes to the ad-tracking landscape. 3. Finding new measurement and reporting strategies will be essential to evaluating return on marketing investment once users must opt-in to IDFA. 2 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
WHAT’S CHANGING AS PART OF iOS 14 The user experience changes introduced in Now that Apple’s identifier for advertisers iOS 14 reflect evolving consumer attitudes (IDFA) will be opt-in for every app, brands about privacy and data use. Recognizing will no longer be able to rely on this tool to that consumers want more control, Apple is determine if individual consumers clicked on giving them the ability to opt-in to both ad an advertisement in an app. Brands will need tracking and sharing their identities when they to find alternative methods to gather precise first open websites and apps in iOS. Those information on which channels are working. decisions will give users much more control over how their data is collected and used. These sweeping changes to user privacy Against this backdrop, brands must move and data use will ultimately impact business toward providing more value to consumers functions that manage return on marketing who are less inclined to share their data. investment – from marketing organizations Prioritizing responsible data usage and to finance and even procurement. transparency will provide a competitive edge. Fortunately, with the changes delayed until early next year, marketers have more time to prepare. [1] They need to take action. Marketing partners like Facebook are also proactively taking steps to help their partners prepare for the changes while reducing unnecessary disruption, ensuring consumer needs continue to be met. 3 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
THE IMPERATIVES FOR ADVERTISING WITHOUT IDFA Accenture’s 2019 Pulse survey results showed that of the 8,000 consumers surveyed… 1 DIFFERENTIATE YOUR BRAND WITH RESPONSIBLE DATA HANDLING AND A VALUE EXCHANGE 51% of consumers think invasive ads are on the rise [2] For marketers, data handling is a competitive differentiator. Brands that maintain transparency and strict data governance and share initiatives around managing customer data with key stakeholders build more trust with the brands and companies they’re engaging with. This will become even more important as the data landscape evolves. Increasing a brand’s first-party data and entering into strategic data alliances are two key strategies. of consumers say a brand has One way to increase a brand’s first-party data is by incentivizing 71% communicated in a way that was too personal [2] customers to share their data through “value exchange” strategies. Many consumers are reluctant to opt-in to sharing their data because of permission fatigue: They share their data, only to find it is used in ways that make them uncomfortable. In Accenture Interactive’s 2019 See People Not Patterns survey of 8,000 consumers, 51% percent said invasive ads were on the rise and 71% said a brand of consumers agree that had communicated in a way that was too personal. But at the it’s important that every same time, 93% of consumers agree that it’s important that every interaction they have with a brand is excellent. [2] To deliver excellent 93% interaction they have with a brand is excellent [2] experiences, brands need to be relevant and understand their consumers – something that’s difficult to do without enough data. 4 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
Brands will need to find ways to build and retain consumer trust and confidence as consumers demand increased transparency, privacy and control [3] over how their data is used. They will also need to take into account a shift in customer expectations related to data and privacy and update their strategies on how data is collected, managed and activated. KEY CONSIDERATIONS FOR DATA HANDLING AND VALUE EXCHANGE: Lean into your value exchange Make data governance a top priority Loyalty, rewards and subscriptions strategy – Reduce permission fatigue – Ensure the data collected and stored – Identify ways to collect customer- and build consumer confidence has proper user consent and can be level information while being with strategic opt-in messaging and appropriately leveraged for media transparent and offering value. Loyalty incentives for customers to share their execution purposes. and subscription programs are going to data with your brand. be increasingly important, but they will not be adopted unless the customers can recognize the value exchange. 5 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
2 REIMAGINE YOUR DATA STRATEGY With the ad-tracking landscape in the midst of unprecedented transformation, marketers should rethink both their ad-targeting and data strategies. Marketers need to reach the right customers, at the right time, with the right message to achieve conversions and ultimately measure ROAS (return on ad spend). The iOS 14 updates, combined with preceding privacy regulations (GDPR, CCPA, ITP, APPI, LGPD, etc.) and the forthcoming cookie-less future, [4] have a compounding impact on marketers. The decline of third-party cookies, which are used for audience-based ad tracking, is looming, and companies must prepare for a cookie-less future. On top of this, brands will have to adapt to the App Tracking Transparency framework arriving with iOS 14. Under this framework, users will need to grant permission for: • Their user/device data to be leveraged for ad targeting • Ad tracking by third-party analytics software development kits (also known as SDKs), the mobile equivalent of cookies • Sharing data with data brokers Companies that want to understand how their ads are performing and target consumers effectively must rethink their ad-tracking and first- party data acquisition strategies. Many current methods will be harder to use as consumers transition to iOS 14. For instance, a brand will not be able to send push notifications to specific consumer segments unless those consumers have opted into receiving them. 6 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
The table below tactically highlights how app-based segments (such as targeting “fitness enthusiasts” based on apps downloaded) for targeting could be at risk. PRE-iOS14 AD TARGETING POST-iOS 14 AD TARGETING Behavioral and Audience Based Mobile Targeting: Targeting Contextual Mobile Targeting: Targeting will be based only on data look-a-like audiences with in-app advertising and cross-site provided by end content providers suggesting details about the advertising based on a defined set of attributes intended audience vs. the actual audience In-App: Push notifications to customer segments focused on In-App: Based on in-app session behavior, contextual targeting exclusive offers on products and services of relevance (push notifications) can be activated with explicit user opt-in to IDFA tracking Retargeting: • Paid Social: Retargeting this segment with exclusive offers Retargeting: and events If a user opt-outs of tracking, brands cannot share any consumer data with third parties for site or app ad targeting purposes. Brands must • Paid Search: Bidding on keywords that align with top attributes relay on opted-in first-party data for ad targeting to facilitate of a segment retargeting on user specific identifiers • Display: Creating an audience based on a segment for display campaign retargeting in-app and across-third party sites Standard Reporting: Refreshed audience segments will need to be applied to standard reports for analysis given the fact that historical Standard Reporting: Applying an audience segment across reports segment data (e.g. pre-iOS 14) will not be permissible for targeted to deepen analysis of customer journey and critical business metrics advertising, storage, or use Suppression: The removal of certain audience targets based Suppression: When a user opts-out, suppression targets can no behavior indicating that the group should not, for any number of longer be used to prevent ads from being served to the wrong reasons, be considered the target for an ad or campaign audience based on previous or current behavior 7 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
Users are demanding greater privacy and transparency, but they still expect personalized experiences. [2] Meanwhile mobile brands and predominately ad-supported businesses rely heavily on digital advertising to drive revenue. KEY CONSIDERATIONS TO HELP MARKETERS PIVOT THEIR DATA STRATEGIES: Focus on strategic alliances with innovative data products Integrate your first-party data server-side for resilient – Consider clean rooms, which provide advertisers privacy- targeting – Marketing partners will be able to facilitate safe access to data with events tied to various user IDs, for ID retargeting by leveraging any number of user-specific management. For example: Google Ads Data Hub, Facebook (versus device-specific) identifiers to target individuals: Advanced Analytics, Adobe Experience Platform, Amazon email addresses, phone numbers, etc. Marketing Cloud, LiveRamp Safe Haven, etc. 8 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
3 RETHINK MEASUREMENT AND REPORTING For marketers, IDFA is currently the key method for mobile attribution that protects consumer privacy while still allowing for data to be extrapolated. For instance, brands can use in-app events to track acquired channel or behavioral data. [5] Mobile attribution lets marketers identify the best-performing channels and determine future marketing budget allocations. It equips marketing teams with the necessary insights to evaluate the effectiveness of their advertising campaigns, budgets and target audiences. For instance, brands can measure the success of mobile advertising, such as app- install campaigns, across social channels including Instagram, Snapchat or Facebook. That will change when Apple makes IDFA an opt-in for every app and, in doing so, greatly reduces its effectiveness. Without IDFA, attribution will happen through Apple’s SKAdNetwork [6] framework, which intentionally aggregates campaign-level insights. While advertisers will have a sense of which cohorts are performing, they won’t have enough granular information to easily price impressions. 9 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
KEY CONSIDERATIONS FOR ATTRIBUTION AND REPORTING UPDATES: Find alternatives to Create new integrated Reset goals and Increase your identity resolution ecosystems for sales reporting – Given that development resources – Brands that use IDFA for – Through the creation of log-level data ingestions will – The SKAdNetwork data stitching, such as integrated experiences not populate IDFA for most will require additional combining impressions where content, ads and user interactions (clicks, development resources and app events, must native commerce exist on events, impressions), brands to configure and maintain begin to explore alternate a singular platform (e.g., will have to pull existing manual implementations. solutions (e.g., graph Instagram and Instagram reporting to understand the data) that include web Checkout), brands can current composition of iOS and app activity. create a closed-loop users and how IDFA is being ecosystem that will used in their organizations. boost the attribution and Forecast the expected optimization of sales. change in performance based on opt-in rates. 10 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
MOVING FORWARD Prepare for an ecosystem transformation by taking these next steps. 1 2 3 TAKE STOCK OF HOW NEW GET TACTICAL AND UNDERSTAND DEVELOPMENTS AFFECT BE PROACTIVE LIMITATIONS YOUR BRAND • Set up a meeting with key mobile marketers • Acknowledge that perceived ROI for mobile • Apple has not prescribed any limitations on to acknowledge the changes. Where campaigns will be different when the IDFA how to communicate the value exchange applicable, use an industry expert to provide changes take effect. Advertisers may see a that comes with opting into providing data a point of view. decrease in audience size as people update to users, which gives brands the chance to • Begin building a strategy to mitigate their devices, depending on the proportion be creative. these changes, including enhancing the of iOS users in their Mobile App Custom • Advertisers should connect with their Apple first-party data strategy, building stronger Audiences. representatives to review the new policies value exchanges, quantifying impact, and • Continue to steer away from reliance on and take the necessary steps towards designing/implementing new tools to third-party cookies for advertising and use compliance. address these changes. server-side tools (e.g., Tealium EventStream) • Brands can leverage the terms and that leverage first-party customer data for conditions in social media apps to ask a user targeting, optimizing and measuring ad to show ads and share their IDFA to fully use campaigns. the app. • Lean on experts to better understand the App Tracking Transparency framework to create custom solutions. [7] 11 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
REIMAGINE DATA STRATEGY WITH A TRUSTED PARTNER While these topics of value exchange, media execution, and attribution are daunting among multiple competing priorities, there is no doubt that the privacy-centric functionality within iOS 14 will gain traction and momentum globally in the coming months. Accenture Interactive can help brands leverage platforms, skills, tools, creativity, technology, systems, and services to create the best experiences for their customers as they work to provide greater value exchange for customer data, focus on responsible data handling, update their data strategy, and find new measurement and reporting strategies to reflect the significant changes this update will bring. 12 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
Get in touch to learn more about how to transform your organization for iOS 14 and a cookie-less future. We are here to help your business navigate the changes ahead. Rebecca Lee About Accenture: Managing Director, Accenture Interactive Accenture is a global professional services company rebecca.j.lee@accenture.com with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Ankit Mehta Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest Personalization & Marketing Analytics Lead, network of Advanced Technology and Intelligent Accenture Interactive Operations centers. Our 506,000 people deliver on the ankit.b.mehta@accenture.com promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared Catherine Lansing success for our clients, people, shareholders, partners Personalization & Marketing Analytics Expert, and communities. Visit us at www.accenture.com. Accenture Interactive catherine.l.lansing@accenture.com About Accenture Interactive Accenture Interactive is reimagining business through experience. We drive sustainable growth by creating meaningful experiences that live at the intersection of purpose and innovation. By connecting deep human and business insights with the possibilities of technology, we design, build, communicate and run experiences that make lives easier, more productive and rewarding. Accenture Interactive is ranked the world’s largest digital agency by Ad Age and has been named a Most Innovative Company by Fast Company. To learn more, follow us @AccentureACTIVE and visit www.accentureinteractive.com. 13 HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
Sources: Disclaimer: 1. https://www.macrumors.com/roundup/ios-14/ This document has been published for information and illustrative purposes only and is not intended to serve 2. Accenture: See People Not Patterns - https:// as advice of any nature whatsoever. The information www.accenture.com/_acnmedia/PDF-110/ contained herein and the references made in this Accenture-See-People-Not-Patterns.pdf document is in good faith, neither Accenture nor any 3. https://developer.apple.com/news/?id=hx9s63c5 of its directors, agents or employees give any warranty 4. https://www.adexchanger.com/data-driven- of accuracy (whether express or implied) nor accepts thinking/how-to-own-data-and-measure- any liability as a result of reliance upon the information performance-in-a-cookie-less-world/ including (but not limited) content advice, statement or opinion contained in this document. This document 5. https://www.singular.net/blog/limit-ad-tracking- also contains certain information available in the public privacy-checkup-in-2020/ domain, created and maintained by private and public 6. https://developer.apple.com/documentation/ organizations. Accenture does not control or guarantee storekit/skadnetwork the accuracy, relevance, timelines or completeness of such information. 7. https://developer.apple.com/app-store/user- privacy-and-data-use/ This document constitutes a view as on the date of publication and is subject to change. Accenture does not warrant or solicit any kind of act or omission based on this document. This document makes only a descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture nor is there any claim made by Accenture to these trademarks and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. 14 Copyright HOW© 2020 TO OVERCOME Accenture.THE All rights iOS14reserved. IMPACTSAccenture TO CUSTOMER and itsEXPERIENCE logo are registered trademarks.
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