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Apple’s much-anticipated iOS 14.5 update enables its users to have more power and control over their data, requiring app companies to comply.
For years, app companies like Facebook have tracked the digital footprint of their users across other apps and websites through default settings they mindlessly accepted when they installed these apps. Putting ‘consent’ back into the tracking, Apple has changed that with iOS 14.5’s privacy update.
The update was originally set to release with the iOS 14 update last year but for some reason Apple dawdled a little and released it earlier this year through its developer and public beta programs. The OS has since then undergone numerous updates as Apple refined the features and removed bugs.
What makes this feature exciting is that it puts a limit to the amount of user data that apps like Amazon, Google, and Facebook typically collected by letting users opt-out of what they track across different apps.
So… what is this much-hyped iOS 14.5 privacy feature?
When iPhone users browse through apps or surf the internet, they leave behind crumbs of their personal data including a replica of their Identifier for Advertisers (IDFA). This data and IDFA copy is often then used by the online ad industry to develop a profile of their behavior. Advertisers use these to deliver customized advertising.
However, Apple’s much-hyped feature, App Tracking Transparency (ATT), changes that.
All future app submissions to the App Store are now required to comply with ATT, which mandates app developers to ask for users’ permission in order to track their digital activities across other apps or websites (on iPhone or iPad).
The highlighted change is nothing but a popup you’ll see from now on on your iPhone or iPad screen asking if you want the app you’re using to track your activity across all of your other apps.
The popup will show you two options, the first one being ‘Ask App, not to Track,’ and the second being ‘Allow.’
If you go with the first option, apps will no longer be able to follow your activity across other apps on your smartphone. This prevents advertising and third-party data brokers from accessing your personal information.
How are the big tech companies taking it?
Although this this popup might seem to be a minor change on the surface, it has already created ripples throughout the app economy – particularly spurring vigorous action by big tech giants like Facebook and Google: the internet’s two largest ad companies.
Facebook in particular has been vocal about this change as the social platform is basically fueled by web users’ data.
Facebook’s advertising income surpassed US$84 billion in 2020, up 21% from the previous year. It’s understandable that anything that comes in the way of its massive revenue-generating system will inevitably be viewed as a potential danger.
In a blog post, Dan Levy, the head of Facebook’s ad business, argued that Apple’s policy change is “about profit, not privacy.”
Adding that the iOS upgrade would require some apps to rely on in-app purchases and subscription fees, from which Apple will receive a 30% share. He also made a reference to the new program Apple launched earlier this year that cut down on the commission to 15% for start-ups or small businesses with takings of up to $1 million per year.
Facebook is known to have staged a months-long crusade against Apple, placing full-page ads in newspapers such as the Washington Post and experimenting with pop-ups within the Facebook app to persuade users to embrace its tracking.
As for Google, Apple’s arch-nemesis in the big-tech world, it is taking very well. The tech giant has decided it will simply stop using IDFA altogether and thus be “in line with Apple’s guidance.”
While losing access to data from other apps is a setback for Google as well, it already has a vast quantity of data from its own array of apps to fall back on.
While everything within Google’s stack is officially labeled first-party, it’s likely that they have alternative tracking methods. For instance, Google can still use the data collected when an iPhone user browses Google Search, Chrome, Maps, Gmail, or YouTube to build ad profiles.
Google is affected by ATT on two more fronts. It warned that developers monetizing their applications through ads “may see a significant impact to their Google ad revenue on iOS.” Users are widely expected to refuse “tracking” upon seeing the prompt. As such, they can no longer be shown personalized advertising, with generic ones being less profitable.
How can app development companies adapt to this new privacy update?
Here are a few ways that app developers can adapt to the new privacy policy:
1. App companies will have to guarantee that they comply with Apple’s privacy policy
The new policy compels all developers to give new App Store privacy disclosures to their users; but, they are not required to change or modify their existing privacy policies. To ensure that their customers are aware of their data practices, app developers must mention their policy both on the App Store download page and within the application itself. Developers can presently evaluate their current privacy policies and verify that they conform with Apple’s privacy policies.
2. They will need to explain to users why they should allow tracking them
App developers will have to try to inform users of the positives of sharing their IDFA. Apple allows app developers to tweak the text that displays in the pop-up when requesting users’ authorization. It also allows developers to create a separate pop-up that provides more detailed and explicit information directly before Apple’s preset pop-up appears, as long as the developer’s clarification isn’t misleading.
Before collecting the user’s IDFA, the developer must obtain consent; however, this consent does not need to be given instantly when the app is being launched. Some developers may choose to show the ATT pop-up immediately after launch to increase the volume of data they can collect, while others may choose to wait for the right moment to show the pop-up when users are more likely to consent to IDFA tracking.
3. Perhaps look for an alternative way for ad attribution and tracking
App developers will have to look for other advertisement strategies that do not rely on the user’s personal details in order to stay in business. This will be useful if more iOS users decide to use Limit Ad Tracking to disable IDFA sharing.
4. Leverage Apple’s SKAd Network
Apple has also introduced the SKAd Network, which was created with ad platforms’ tracking and attribution in mind. SKAd Network also tracks re-downloads, which aids ad networks in determining the success of re-engagement efforts. Regardless, this innovation may only serve to aid in attribution tracking.
The network will not disclose any of its users’ information to app companies or advertisers. This isn’t ideal because Apple has stated that SKAd Network will only accept attribution depending on clicks. In addition, the overall quantity of campaign commercials will be reduced.
Planning Ahead with CitrusBits
Given that a huge majority of iOS users will likely refuse to authorize the tracking of their digital activity, many app developers and businesses will be looking for other ways to track users without using IDFA— but this will not be an easy feat. Going forward, app development companies will have to tread carefully, achieving a balance that allows them to experiment with new ways while respecting and complying with Apple’s privacy policy to maintain their users’ trust.
At CitrusBits, we are constantly evolving with Apple, Google, and the greater app development industry to develop and implement best practices on behalf of our clients. Get in touch with CitrusBits if you have any questions about how to optimize your existing app in light of the iOS 14.5 privacy update, or if you’re looking to get a new iOS app developed for your business. Having built mission-critical iOS apps like Erupt, a news and video debate app (read case study), for notable names such as Emmy-winning film producer Edward Walson and former ABC News/GMA producer Bryan Keinz, CitrusBits has the teams and expertise to help you elevate your mobile application.
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