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Android may be biggest beneficiary of Apple’s privacy protections

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Android may be biggest beneficiary of Apple's privacy protections

Apple’s app privacy rules have resulted in 59% of mobile advertisers moving ad spend from them to Google Play and alternative Android platforms, according to a new study released today. One result: In the third quarter of 2021 Android got more marketing dollars than iOS for the first time, a 10% swing from three years earlier. 

The report, by mobile game measurement service Tenjin and Growth FullStack, a mobile advertising intelligence provider, shows how much has changed since Apple introduced its App Tracking Transparency (ATT) rules slightly more than a year ago.

What it is. Introduced as part of iOS 14.5 in April of last year, ATT is an opt-in privacy protection system, requiring apps to get user consent for tracking. To make up for this loss of data, Apple gives advertisers direct access to anonymized SKAdNetwork (SKAN) data. This began last September as part of the iOS 15 release.

SKAN has proven difficult for advertisers to use, though. Few (32%) of companies have access to in-house data science talent, according to the study. However, 75% have implemented some form of marketing automation to gain insight from large, disparate datasets. 

Read next: Android to follow the iPhone in restricting cross-app tracking

The cost. The median estimated revenue loss due to Apple’s privacy changes was 39%. Of those advertisers that had their revenues impacted, 75% said it put their business at risk.

Biggest impact. ATT appears to have hit mobile game advertisers particularly hard — 68% said mobile marketing was more difficult in 2021 (43% non-gaming). They are also more likely to shift budget to Android (63% vs 48%), and use attribution methods such as probabilistic attribution or fingerprinting (91% vs 70%). 

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Worth noting. What is most worrying to most (84%) mobile advertisers is Google introducing something like ATT for Android. 

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Read next: Android to follow the iPhone in restricting cross-app tracking

Why we care. This survey was based on US and UK companies, which explains the ad spend bias toward iOS. Apple phones have a 57.4% market share in America and just under 50% in the United Kingdom. This is radically different from the rest of the world where Android has 70% of the market. If ad spend continues to shift toward Android (and this is by no means certain), would Apple reconsider or modify its privacy protections?


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About The Author

Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.

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How clean, organized and actionable is your data?

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90% of marketers say their CDP doesn't meet current business needs

A customer data platform (CDP) centralizes an organization’s customer data, providing a single 360-view of each consumer that engages with the company. Yet there are still data-related considerations that organizations have to make beyond what the CDP does.

“[CDPs] were designed to fill a need – to enable a marketer to easily get to the data they need to create their segmentation and then go on and mark it from that point,” said George Corugedo, CTO of data management company Redpoint Global, at The MarTech Conference. “But the issue is that CDPs really don’t take care of the quality aspects of the data.”

Maintaining data quality also impacts segmentation, campaigns and privacy compliance challenges for marketing teams that use this data.

Data quality

The data in a CDP depends on the quality of where it came from. Therefore, an organization using a CDP must also consider the quality of the data sources and reference files used to build out the CDP.

“The inevitable question is going to be, how good is this data?” said Corugedo. “How much can I trust it to make a bold decision?”

This is something that has to be on every organization’s radar. For instance, when identity resolution is used, the issue depends on the quality of the third-party reference files. If they are provided by a telecommunications company or credit bureau as the data partner, those files might only be updated quarterly.

“It’s just not an optimal solution, but every single CDP on the market uses some form of reference file,” Corugedo stated.

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It’s up to the data scientists and other team members working within the organization to own the accuracy of these data sources.

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Read next: What is a CDP?

Segmentation and other actions

The quality of the data using specific reference files and sources will vary and will impact the confidence that marketers have in creating segments and using them when deploying campaigns.

Marketers have to make this decision at a granular level, based on the trustworthiness of data from a particular lineage.

“If they have a campaign that is reliant on suspect data, they can actually delay that campaign and say maybe we wait until that data gets refreshed,” said Corugedo.

Otherwise, marketers are just “spraying and praying.”

Using rules instead of lists

The advantage of having a CDP is unification of all data. But the data is being updated all the time. Instead of deploying campaigns based on a fixed list of customers, the use of rules to define segments allows marketers to update who they engage in the campaign.

“A list, as soon as it’s detached from the database, starts to decay because it doesn’t get any updates anymore,” Corugedo, adding that using lists takes longer to execute a campaign.

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Lower quality from data that isn’t updated can have serious implications for healthcare and other industries, where accuracy is essential. 

“Instead, rules are passed through the campaign just like they would be with a list, but those rules reevaluate every time there’s a decision point to make sure that only the qualified people get the particular content at that point,” Corugedo explained.


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Privacy and regulatory compliance

Maintaining data quality through a Redpoint Global dashboard, or a similar combination of tools and data personnel, will also help an organization manage privacy.

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The crucial point is that people on the team know where the data came from and how it’s being used in campaigns. The stakes for sending out relevant messaging are high. Privacy and compliance issues raise the bar even higher.

See also  Meta Updates Privacy Policy with New, More Illustrative Examples and Language

If you’re using a CDP, you can save headaches and extra labor by using a tool that has compliance and privacy baked in, so to speak.

“What we’ve done is embrace some of this complexity and absorb it into the environment, so the marketer never even sees it,” said Corugedo. “What we do is with every implementation, we will implement a PII vault that keeps PII data super secure, and we can anonymize the marketing database.”

This way, personal information of individual customers (PII) is never violated.

“Marketers ultimately don’t necessarily need to have visibility to PII,” Corugedo explained “They like to see it for testing purposes and making sure that it looks right and everything, but the truth is we can do that in other ways without revealing PII.”

Having a handle on data quality adds to the confidence marketing teams have in creating segments and executing campaigns, and it can also help protect the customer’s privacy and guard against regulatory infringements.

Facts not fiction: Beyond the CDP from Third Door Media on Vimeo.

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About The Author

Chris Wood draws on over 15 years of reporting experience as a B2B editor and journalist. At DMN, he served as associate editor, offering original analysis on the evolving marketing tech landscape. He has interviewed leaders in tech and policy, from Canva CEO Melanie Perkins, to former Cisco CEO John Chambers, and Vivek Kundra, appointed by Barack Obama as the country’s first federal CIO. He is especially interested in how new technologies, including voice and blockchain, are disrupting the marketing world as we know it. In 2019, he moderated a panel on “innovation theater” at Fintech Inn, in Vilnius. In addition to his marketing-focused reporting in industry trades like Robotics Trends, Modern Brewery Age and AdNation News, Wood has also written for KIRKUS, and contributes fiction, criticism and poetry to several leading book blogs. He studied English at Fairfield University, and was born in Springfield, Massachusetts. He lives in New York.

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