Apple has officially launched their new iOS 14.5 update. This includes various new features such as options to unlock your phone when wearing a facemask. The most notable change, however, is the new privacy feature App Tracking Transparency (ATT). Now, when users of iOS 14.5 open up an app, they will be prompted to choose if they consent to third party sites tracking their data. 

Since the announcement of these changes in June last year, Apple has faced opposition from many companies who argue that the new approach will have a major impact on digital marketing efforts. One of the most vocal companies as Facebook, launched a public campaign opposing these changes, claiming that the policy “will have a harmful impact on many small businesses that are struggling to stay afloat”. 

In the past, Facebook has collected data by installing a piece of code, called a pixel, onto websites that could then track user activities such as adding to cart, searching for items or purchasing. This data could then be used by advertisers to find new prospecting audiences as well as retargeting past visitors with personalised ads. With Apple’s new updates the data collected from these pixels will diminish as only 8 events can be tracked per domain. As Facebook makes its revenue from companies advertising on their platform, it is no surprise that they were opposed to the new changes. 

However, Facebook’s stance is a biased one that may be rooted more in politics than the selfless caring of the little guy and their small business. Despite their ongoing protests, Facebook has had no choice but to follow Apple’s policy or risk being taken off the App Store. They released a list of changes that they have made in order to support businesses in adapting to the new iOS update and, though the pixel may collect less data, the changes aren’t as drastic as many make out. Remarketing will still be possible, but rather than using the pixel, marketers will have to do it the old fashioned way, with URLs. Some new estimates predict that even in a worst-case scenario, ad performance should not dip by more than 10%. Therefore, the effects may not drastically impact advertisers but instead only affect Facebook who will feel these drawbacks as they are able to collect fewer data about you. 

The specific effects that these iOS 14.5 changes will have are as yet, unpredictable, as the scale of the impacts will greatly depend on how many people choose to opt-out. Though many industry professionals are predicting that in the current climate when privacy seems to be at the forefront of people's minds, it is estimated that the majority will choose to opt out. However, even with this being the case, there are still steps that marketers can take to reach their audiences with relevant ads at impactful times. Whatever the impact, marketers will need to keep an eye on campaigns with these new changes in mind and monitor, track and adapt their strategies to keep up with this constantly evolving industry.