“The Sell Sider” is a column written by the sell side of the digital media community.
Today’s column is written by Thanh Do, product marketing manager at Permutive.
It’s no secret that Apple’s App Tracking Transparency (ATT) framework has rocked the advertising industry. Before the introduction of opt-in consent, 70% of users enabled cross-app tracking. But as of September 2021, only 21% of users worldwide have opted into ATT.
With Google set to enforce similar privacy changes to Android Advertising ID soon, advertisers and publishers are left with no choice but to adapt to these significant changes to mobile privacy. But there are a few ways to address the challenges that come with requiring explicit tracking consent.
App publishers have a unique opportunity to offer advertisers an alternative to device IDs.
Here’s why they need to switch their long-term focus to privacy-compliant first-party data.
The value of publisher audiences is declining
Without Mobile advertising IDs (MAIDs), Apple and Android will be limited in their ability to collect sufficient data to scale audience reach, track and measure campaign performance for advertisers. In addition, it will cost advertisers more to achieve the same results. For example, loose-tea-leaf seller Plum Deluxe once spent $27 a month to acquire a customer and now spends $270.
With reach and measurement capabilities waning and prices inevitably shooting up, advertisers will need to seek alternative platforms with rich first-party data for reallocating their media dollars. This leaves the door wide open for app publishers.
First-party data is becoming the new gold standard
As guardians of data, publishers have access to a robust range of consumers that interact with their portfolio of websites and apps. This wealth of first-party data provides the kind of behavioral insight that advertisers seek, making publisher solutions valuable and attractive.
But relying on existing first-party data alone will not allow for a long-term sustainable business model that maximizes revenue and monetizes this opportunity. Publishers should explore a combination as they navigate ATT and prepare for a future without MAIDs.
Develop a strong first-party data strategy
Use this opportunity to improve direct customer relationships and collect different types of first-party data.
Increase transparency
Mobile app publishers can control the messaging used in the opt-in notification. Be transparent with how the data collected will alleviate consumer concerns and encourage user opt-in.
Demonstrate value
Focus on improving the in-app experience. Demonstrate to users the value of opting-in in exchange for a personalized experience.
Explore new technology
Start embracing and testing new infrastructures that are privacy-compliant and not reliant on mobile IDs.
What happens next?
App publishers can see excellent results by effectively tapping into first-party data. That means using real-time targeting on first-page views at scale on both Apple and Android devices, without reliance on IDFA or MAIDs.
Mobile app publishers should adapt early. By investing in contextual and privacy-compliant first-party data to combat ATT, they’ll offer a viable alternative solution for advertisers.
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