Apple is turning the privacy settings of its mobile ecosystem upside down. When it releases its app tracking transparency (ATT) framework with iOS 14.5 on April 26, it will shut off a stream of data that app developers, measurement companies, and advertisers have used to link users’ behavior across apps and mobile websites — a move that could reshape the digital advertising industry. With the update, the “identifier for advertisers” (IDFA), which has been activated by default on Apple devices and provides access to user-level data to app publishers, will be switched off and users will need to grant apps explicit permission to access it. With in-app prompts asking users, “Allow [app name] to track your activity across other companies’ apps and websites?” opt-in rates will likely be low.
Apple Is Changing How Digital Ads Work. Are Advertisers Prepared?
A survival guide for the new, privacy-centric iOS 14.5.
April 26, 2021
Summary.
The rollout of Apple’s new privacy settings is upending the rules of digital advertising on the iOS platform. By limiting advertisers’ ability to track user behavior, Apple is forcing them to adapt to a new paradigm — and fast. As other tech companies may soon follow suit, this disruption is an opportunity for advertisers to prepare for the coming era. They should embrace new privacy preserving approaches; know that privacy workarounds are a short-term strategy at best; transition away from user-centric models; invest in better understanding their audience; and use ad creativity as a way of differentiating themselves from rivals.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.