Apple’s App Tracking Transparency Policy(ATT)
Apple’s App Tracking Transparency (ATT) policy is a privacy measure in iOS 14.5 and later. It requires app developers to get user permission before tracking their activity across apps and websites owned by other companies. This pop-up notification asks for consent to track data for targeted advertising or sharing with data brokers.
Apple’s ATT policy gives users more control over their personal data and enhances privacy by providing transparency and choice in data tracking. It affects the advertising industry by limiting marketers’ ability to track and target users across apps without explicit consent. The policy reflects Apple’s commitment to user privacy and has sparked discussions among tech companies, marketers, and privacy advocates about its impact on the digital advertising ecosystem.
How does it work?
Apple’s App Tracking Transparency (ATT) requires app developers to seek user permission before tracking their data across apps and websites owned by other companies. When users open an app, they receive a pop-up asking for consent to track their data for targeted advertising or sharing with data brokers. Users can choose to allow tracking or opt out by selecting “Ask App not to Track.” If they opt out, the app cannot access the Identifier for Advertisers (IDFA), affecting targeted advertising. ATT aims to give users more control over their data and impacts marketers who must obtain explicit consent for data tracking.
How does it look to the users?
Option 1
When users install and open an app, they receive a pop-up message. This message asks if they want to allow the app to track their data for targeted advertising or sharing with data brokers. Users can choose to give consent or opt-out by selecting “Ask App not to Track.” This way, users can make an informed decision about data tracking each time they use the app.
Option 2
Users can manage their tracking preferences and privacy settings for all apps on their iPhones through the settings section. They have the option to opt out of all tracking, giving them greater control over their data privacy in one centralized place.
Who does this affect?
ATT (App Tracking Transparency) primarily affects app developers, advertisers, and users on the Apple iOS platform.
i. App Developers
ATT affects iOS app developers who collect user data for targeted advertising or share data with data brokers. They must implement Apple’s App Tracking Transparency framework, which prompts users to give explicit consent before their data is tracked or shared with 3rd parties.
ii. Advertisers
ATT poses challenges for advertisers who solely rely on user data for targeted advertising. With users having the option to opt out of tracking, advertisers may face limitations in accessing personalized data, making it more difficult to target specific audiences effectively & give them personalized experiences.
iii. Users
ATT directly affects iOS users in a good way, by giving them more control over their data privacy. When they install and open an app, they receive a prompt to choose whether to allow or deny tracking. Additionally, they can manage tracking preferences for all apps through their iPhone settings(explained in the previous section).
What type of advertising companies will be affected?
- Companies that rely on 1st party data
The App Tracking Transparency (ATT) change by Apple affects any company that relies on first-party app data for advertising or other purposes. With users having the control to allow or deny tracking, these companies may face challenges in obtaining user consent and accessing personalized data for their advertising efforts. This change impacts various industries operating iOS apps that depend on user data to customize their services and ads.
Example: Facebook - Companies that rely on 3rd party data
The ATT change affects companies that collect data from multiple apps and sources. With users able to opt out of tracking, these companies may struggle to gather comprehensive user data, impacting their ability to create detailed user profiles and targeted advertising campaigns. It particularly impacts companies relying on cross-app data collection to understand user behaviour for advertising and analytics purposes.
Pre ATT: 4 apps
Post ATT: 2 apps(number of apps will be significantly reduced) - App Download Campaigns
ATT presents a huge challenge for tracking app download campaigns. Advertisers must be more innovative and strategic in reaching and engaging users while respecting their privacy choices. Measuring the effectiveness of the campaigns will be difficult as when the user opts out for sharing the data neither party involved in the campaigns will understand whether the user has completed the action or whether what campaign has bought him to the application.
The following tools will get affected:
AppsFlyer/Kochava
How to work with ATT & Campaign Reporting?
Reporting options in terms of data tracking and attribution can be broadly categorized into two approaches: probabilistic and deterministic. These methods are used to measure the effectiveness of advertising campaigns and attribute actions or conversions to specific marketing efforts.
- Probabilistic Reporting
Probabilistic reporting uses statistical algorithms to estimate attribution and user behaviour. It makes educated guesses based on observed patterns in data. It’s less precise than deterministic methods, which directly link actions to specific users. Probabilistic reporting is used when access to precise user data is limited or restricted.
Estimated number of results based on data such as confirmed downloads, ATT opt-out rates and user behaviour.
Probabilistic Reporting Example:
Confirmed Downloads: 100
ATT Opt-In Rate: 50
Assumption: Only 50% of all downloads are being tracked
Probabilistic Downloads: 200 - Deterministic Reporting:
Deterministic reporting directly tracks and attributes actions using precise user data, such as user IDs or email addresses, to connect them with specific advertising campaigns. It provides accurate attribution and is used when platforms have access to first-party data and user consent.
1:1 confirmation of results. Only reporting on confirmed downloads.
What you should do as an advertiser?
Ask the advertising companies where their data is coming from and how ATT has affected them. As an advertiser, it is essential to have a clear understanding of the data sources used by advertising companies and how the implementation of App Tracking Transparency (ATT) has impacted their practices.
Engage with advertising companies to understand their data practices and how they adapted to ATT challenges. Knowing their approach helps you make informed decisions for advertising partnerships, ensuring campaigns comply with privacy regulations and user preferences.
I would love to hear your thoughts on this topic in the comments. If you enjoyed this article, please Follow me here on Medium for more stories on similar topics and other Product Management-related subjects.
If you are hungry for insightful and thought-provoking content? Look no further! Subscribe to my Medium Blog and get regular updates on the latest articles and musings.
I am always open to having a healthy conversation over a cup of coffee.
Let’s connect on LinkedIn! We can also connect on Twitter — I’m always up for a chat. Whether you have questions, need help, or just want to say hi, feel free to reach out!
