One Year On, Nearly Half of Users Opt-In to Apple’s ATT Tracking

Apple sent shockwaves through the industry a year ago with the introduction of its App Tracking Transparency (ATT) framework, a mechanism that asks iOS users whether they want to be tracked by apps and have that data used by marketers to target ads. This sent advertisers into a tailspin, concerned there wouldn't be enough addressable inventory for them to serve mobile campaigns to. However, a recent study from mobile attribution firm AppsFlyer, which helps marketers measure mobile campaigns, shows that user opt-out rates have somewhat stabilized over the last year, based on data from March 2022. According to the report, the consent level was highest when users launched the app for the first time. Here, 46% selected "Allow" on the pop-up. AppsFlyer arrived at these numbers by observing 4,600 iOS ATT-implemented apps across its network. “The industry was very much concerned that very few users are going to say yes,” said Shani Rosenfelder, head of content and mobile insights at AppsFlyer. “But the numbers are higher than expected.” Apple's App Tracking Transparency Has Advertisers Scrambling, With Concern More Is to Come There's a growing body of evidence that suggests opt-out rates are not as woeful as first expected. Data solution platform Lotame predicted an 80% opt-out rate in October 2021, and months later saw industry publishers suggesting opt-out rates between 54% and 62% (currently it sits at 65% for Lotame). Similarly, a recent analysis from eMarketer suggested a 63% opt-out rate. Platforms and marketers are all figuring out how to manage the increasingly changing privacy landscape, which is making it more tricky to track and target audiences. The privacy changes that came with Apple’s iOS14.5 update are expected to blow a $16 billion hole in the revenue of firms like Meta, Snap, YouTube and Twitter in 2022, per Lotame. While opt-out rates may have stabilized, that has left a finicky patchwork of measurement solutions for marketers to grapple with. While ultimately, analysts speculate an eventual increase in Apple’s revenue. Consent rates are higher earlier on AppsFlyer found that consent is highest when users launch an app for the first time as a part of “the series of in-app notifications that users get when they are installing apps,” said Rosenfelder. Our ability to find those audiences have shrunk which, of course, is driving up those costs.—Jessica Simpson, svp, global solutions consulting and verified technology at Publicis Media There’s a 30% drop in consent between the first and the 120th minute of downloading the app, per the report. But, showing a post-ATT in-app notification to non-consenting engaging users can be beneficial too, since users may not know they have the option to change their tracking settings later on. This is particularly true for non-gaming apps, where the study saw that after prompting users again, 30% had a higher opt-in rate on day seven compared with the first day. For this, Rosenfelder recommends AB testing by showing the prompt to users a few days after the app installation, or at first launch and then a few days later to those who opted out. “Ultimately it's really about testing and balancing these two possibilities,” he added. A higher cost of ads As more people opted out of being tracked, the cost of ads also went up as addressable audience pools decreased. “We are seeing a lot of disruption,” said Jessica Simpson, svp, global solutions consulting and verified technology at Publicis Media. “Our ability to find those audiences have shrunk which, of course, is driving up those costs.” She added that targeting audiences on iOS devices led to an increase of between 20% to 50% in CMPs. As addressable audiences decreased, marketers pumped up investment to prove return on ad spend, said Simpson. Industry sources feel Apple is not anti-ads, per se, since it is driving more marketers inside its own walled garden, making it well equipped to deliver effective advertising and measurement. Furthermore, Android joining privacy framework Google’s Privacy Sandbox will further limit third-party tracking and potentially eliminate cross-app identifiers. “These challenges are also driving digital budgets towards CTV, an environment that is more controlled, arguably more premium, and doesn’t inherently have the same issues,” said Vikrant Mathur, co-founder and CEO of the ad-supported video-on-demand streaming platform, Future Today.