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Apple’s controversial update of App Tracking Transparency (ATT) seems to have a significant impact on Facebook, with The Social Network today outline some of the specific ways in which the ad reporting was affected by the new privacy guidelines.
For a quick context – in April, Apple released its new tracking alerts for data retrieval, which asks iOS users directly to sign in to track their activities within each individual app.
With the instructions giving users the option, amid various news reports about data misuse and leaks, it was very likely that many people would choose to disable the detection of data. The actual numbers here are not definitive, but reports do indicate that the the majority of iOS users choose to locate, which has apparently declined slightly over time, but is still well above 60% opt-out rates.
The flow effect is that advertisers then need to have less data — for example, until this change, if you click on an ad that leads you to an app, and then buy something in the app, the advertiser can track and then target you in the future with more relevant ads. Due to the introduction of ATT, this is no longer possible, at least not at the same pace. And one of the most important affected by this is Facebook, which has lost access to a wide range of tracking data that has driven part of the targeting engine.
As explained by Facebook:
“As we noticed during our earnings call in July, we expected increasing headwinds of platform changes, particularly the recent iOS updates, to have a greater impact in the third quarter compared to the second quarter. We know that many of you are experiencing this greater impact, just as we are.”
The most specific impact for Facebook here is conversion reporting – because Facebook now can not detect conversions in the same way, it has worked to implement a new system that estimates activity on systems learning.
The estimates so far do not quite yield the following:
“We estimate that in total we underreport iOS web conversions by approximately 15%; However, there is a wide variety for individual advertisers. We believe that real-time conversions, such as sales and app installations, are higher than what many advertisers report. ”
This is a big impact for Facebook advertisers, because without accurate conversion data you can not know what works. Most major advertisers and agencies are figuring out how to counteract this by supplementing their Facebook data with information from Google Analytics and other platforms, but this is causing significant consequences, especially for smaller brands that do not have the analytics name or has no capacity, check the information provided by Facebook.
For many, it simply means that they see fewer conversions, and that they may not have a clear understanding of why. This can be a big problem for Facebook if the advertisers want to spend their money elsewhere, for example. And while TikTok continues to rise and await this holiday season, it could become a major turning point in the history of the short-form video app.
To counter this, Facebook is working on various data forecasting and estimation-based solutions that will provide modeled data on conversions to provide a more accurate picture of ad results.
‘We are optimistic about our attempt to develop perennials new technology that improves privacy This reduces the amount of personal information we process, while still allowing us to show personalized ads and measure their effectiveness. ”
Facebook is working on this, but it is still in a development process, which means that the upcoming holiday season will have at least a significant impact on the report due to the ATT update.
To manage this, Facebook has given a series of tips to help advertisers reduce the consequences – and preferably to continue investing in Facebook ads.
The most important tips from Facebook include:
- Allow time before analyzing performance – The most important tip from Facebook is what advertisers need to give its systems time to adapt before making changes to poorly performing campaigns. “Given the nuances of delayed data and modeled reporting, consider waiting a minimum of 72 hours or the full length of the optimization window before evaluating performance for conversion optimized campaigns. Facebook’s system is based on the ‘learning’ of optimal performance triggers and the type of people who respond to each ad, and as such it takes time to gather the response data to ensure it has the maximum response.
- Follow best practices in the learning phase to help the delivery system learn the best way to deliver your ads – Again, it’s based on time – Facebook’sLearning phase‘best practices indicate that it is necessary 50 optimization events within a 7-day period for Facebook’s ad matching systems to get a complete picture of the best response to your ad, which will then help Facebook optimize ad delivery. As you can see in the chart below, in the initial ‘learning phase’, when Facebook’s systems find out what type of people are responding to your ads, performance is less stable, but over time it decreases and your CPA becomes equal. out. Facebook says that in the current situation, it is more important than ever to follow its learning vases approach.
- Set the Conversions API – Facebook’s Conversions API helps create a direct connection between website events and Facebook, which can also mitigate the impact of ATT. “Adding the Conversions API to your existing setup will optimize your advertising campaigns, reduce cost-per-action and measure campaign outcomes more accurately, while providing the same privacy protection we’ve set up in our other business tools.”
In addition, Facebook also suggests that advertisers consider ‘all available tools’ to measure their campaign performance, including those not directly linked to Facebook, that could supplement your campaign data. As noted, most specialist advertisers already do this and are working on new models that contain different data sources to give a more accurate picture of campaign performance based on different metrics.
The challenge for non-specialists is that you need to know which tools work best, and this can take some expertise and insight beyond Facebook itself. Which, of course, is not ideal for Facebook, which may not offer the full range on a single platform, but for advertisers who want to track their performance, it’s important to note that your Facebook performance data will be affected, and you should consider it within your measurement.
Facebook offers additional tips and notes in it complete impact overview, which is an important reading material for those who portray their approach to holiday campaigns.
We do not yet know what the full impact of the ATT change will be and how advertisers can handle it, and if there are more privacy changes, you can expect to see more similar consequences in the future.
We will keep you up to date with the latest best practices to best navigate these shifts.
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