How Will Apple's Privacy Requirements Affect Your Business?

Are you losing sleep thinking about the new, more stringent privacy changes Apple is enforcing for apps and what impact it is going to have on your marketing efforts? Don’t waste those precious zzzs on nighttime worries– it may not be as bad as companies like Facebook are predicting. Here is a quick breakdown of the current situation and a few things you can do to mitigate the potential impact these changes will have on your advertising initiatives.

What Are the New Requirements and Why Do I Care?

According to Apple, “The App Store now helps users better understand an app’s privacy practices before they download the app on any Apple platform. On each app’s product page, users can learn about some of the data types the app may collect, and whether that data is linked to them or used to track them.”,¹ Most importantly, the user will be asked whether they would like to opt into data tracking, and unless they explicitly say “Yes”, apps will not be allowed to track much of the data they previously could.

You may be thinking, “Well, I don’t make an app, so why would this impact my marketing efforts?” You may not own an app, but chances are, you use one to do at least some of your digital marketing. And without the ability to track data, many apps, like Facebook, will not be able to provide their advertisers with the hyper-targeted ad placements that perform so much better than their “spray and pray” counterparts that mass deploy messaging with hopes of landing on an appropriate target.

What Impact Will These Changes Have on My Marketing?

Facebook is currently leading the charge in fighting Apple on these changes. On their website, Facebook cites, “Apple’s policy could limit your ability to use your own data to show personalized ads to people who are likely to be interested in your business. Now that 44% of small businesses are turning to personalized ads to adapt to the outbreak of COVID-19, this update will be especially hurtful to small businesses in already challenging times.”²

While the full impact of these changes cannot be realized until people start opting in or out in large numbers, it is unlikely that the impact will not be as harmful as Facebook is making it seem. It is true that Facebook has seen an uptick in advertising dollars spent since people have been largely homebound – but Facebook is not the only place that people can advertise. A recent article from WIRED magazine points out, “Apple’s policy will take a bite out of surveillance capitalism, and will hand that excess profit back to traditional media and advertising businesses that will offer small businesses a greater diversity of opportunities to get the word out about their products and services.”³

Furthermore, it is highly likely that Facebook will find some creative ways to eventually adapt their advertising platform to “help the ad industry maintain profitability while respecting Apple’s new compliance constraints”³ - even if some of their customers see decreased ROI on their ad spending in the short term.

What Can I Do to Prepare?

Even if Apple’s privacy changes don’t have the significant impact Facebook is predicting, it is wise for business owners and marketers to prepare for change nonetheless. So rather than panicking, start thinking about alternate ways to connect your brand with your core audience. Here are a few ideas to get your started:

Content Marketing

When done right, good content marketing will bring your ideal audience to you. This is not a replacement for the kind of targeted messaging you might do on Facebook, but rather a complement that will help you increase the “stickiness” of your messaging. You may need to do a bit of research to identify topics that are important to your audience, but some brainstorming will go a long way in helping you build a great content library that will keep the leads flowing.

Media Partners

Most industries have several media companies that produce publications targeted at specific, relevant audiences. They typically offer advertisers both print and digital options, and will sometimes even accept content such as editorial, webinars, and eBooks. When considering a media partner in your space, it is very important to understand whether their data is first, second, or third-party. First-party data is ideal, as it means they have collected the data themselves and have full rights to it, so their targeting will not be affected by the looming app-based data privacy disturbances and your messaging will continue to be delivered to your ideal audience.

Nurturing

Nurturing is a great way for you to make the most of your current database. Existing leads that have not converted and current customers that may purchase from you again (or refer a friend) are a powerful potential source of revenue. Consider using a drip campaign to move existing leads farther down the purchasing path. For customers, think about starting a customer loyalty or referral program – you’ve already done the hard work of converting them, now you just need to make them remember why they like you!

Direct Mail

Direct mail can be a powerful promotional tool – especially when you combine it with the power of digital tracking and retargeting. Many direct mail companies offer robust physical mail targeting and website visitor retargeting options. You can also opt to use lead and customer lists you already have and use special tracking links (like a custom redirect or landing page), so you can precisely promote to your target audience while easily measuring your campaign performance.

Don’t Let Apple Take a Bite Out of Your Business

We can’t know for sure the impact Apple’s increased privacy restrictions will have on businesses, especially those that currently rely heavily on Facebook advertising. Will they be as bad as some doomsayers are prophesizing – probably not. But does it make sense to be prepared by diversifying your advertising efforts and embracing other highly effecting tactics and channels – yes. You should also start recording comparable metrics such as CPL for each of your current marketing channels and each of the new marketing channels you decide to use so can easily and accurately compare their performance and make tweaks as necessary to optimize your efforts.

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References:

1. Apple, Inc. “App Privacy Details - App Store.” Apple Developer, 2021, https://developer.apple.com/app-store/app-privacy-details/

2. “Speak Up For Small Business: Impact Of Apple's Latest Update.” Facebook for Business, 2021, www.facebook.com/business/apple-ios-14-speak-up-for-small-business

3. Ghosh, Dipayan. “Nice Try, Facebook. IOS Changes Aren't Bad for Small Businesses.” Wired, Conde Nast, 24 Dec. 2020, www.wired.com/story/sorry-facebook-ios-changes-not-bad-for-small-businesses/