iOS 14 Update x FB/IG Advertising

Update: May 3, 2021

The Apple iOS14 update has released and here’s the simple overview of the changes to Facebook Advertising:

 

*This article is written exclusively for Culture Digital Agency clients.
 

With the iOS 14 feature of App Tracking Transparency, users must now select the option to allow Facebook to track them across apps and websites. With this moving to an 'opt in' process rather than an 'opt out' process, we expect a significant percentage of users to opt-out.

IOS14 Facebook Update.png

Targeting Changes:
 

  1. With Apple’s new AppTrackingTransparency (ATT) prompt we will see some people opting out and we will see some audience sizes decrease.

    • This mainly relates to your website audiences that we retarget (hot audiences).
       

  2. For the audiences that will remain targetable we will still be able to track their conversions via the Conversions API (or CAPI) even if they have opted out of website tracking. For CDA clients we have already set this up for you.
     

  3. Here's a list of audiences that we should see no reduction in size or ability to target:
     

    • Hot Audiences

      • Email List Subscribers

    • Warm Audiences (All)

      • IG Organic Engagers

      • FB Organic Engagers

      • All Advertising Engagers

    • Cold Audiences (All)
       

Attribution model changes - expect to see a drop in ‘reported conversions’:
 

  1. The attribution model will now change from 7-day click + 1-day view model to 7-day click model only.
     

    • This means if someone viewed an ad (but didn’t click on it) and then later visited your website directly and purchased an item, we would previously be able to attribute a conversion to the ad campaign. Now, this type of 'view' conversion will not be able to be reported. From our complete agency 'attribution model report' across multiple millions of dollars in ad spend in the last 12 months approximately 33.7% of 'reported conversions' were attributed through 1-day view attributions.
       

    • For CDA clients we have created an ‘attribution model report’ in your data studio so that you can see what percentage of your conversions in the past year were attributed by the 1 day view model and what level of drop-off to expect in ‘reported conversions’. This will help us to model new benchmarks to make up for the missing data.
       

  2. Our conversion results may not include all conversions from people using iOS 14. Facebook will use ‘statistical models’ in some cases to make up for some of the missing data.
     

Conversion reporting time:
 

  1. Conversions will now be reported from the time the person converts and not when the impression was made (previous method).
     

    • Previously: If someone clicked on an ad on Monday and purchased on a Wednesday, the conversion would be attributed to the Monday. 

    • Now: If someone clicked on an ad on Monday and purchased on a Wednesday, the conversion will be attributed to the Wednesday.
       

Strategy Adjustments:
 

  1. It will be important to create new ROAS targets based on predictive formulas to estimate the expected drop in ‘reported conversions’. We will create predictive formulas specific to your business based on your 'attribution model report' in your data studio.
     

  2. With some website audiences no longer being able to be retargeted this will place greater value on identifying these users by:
     

    • Collecting their emails with pop-ups. We will still be able to target email subscribers with no changes.

      *We will be able to identify and retarget all people who have visited the website from ads or from FB/IG organically as warm audiences.
       

  3. The spend strategy for website audiences will need to be adjusted based on audience size and frequency (the number of times people see an ad within a time frame)
     

  4. It will now be more important to look more holistically at the impact Facebook Ads have at driving overall sales and not just in terms of ‘reported conversions’ and ROAS. Though conversions will now be under-reported due to people opting out of tracking, you will still see the conversions coming through.
     

  5. These changes may slow down some of the learning processes that we have in both human and machine learning but we will continue to adapt to the ever-evolving ad-tech landscape keeping you ahead of the curve.
     

  6. Continue to explore Facebook and Instagram shopping. More updates to follow.