HOW TO OVERCOME THE iOS 14

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HOW TO OVERCOME THE iOS 14
HOW TO
OVERCOME
THE iOS 14
IMPACTS ON
CUSTOMER
EXPERIENCE
HOW TO OVERCOME THE iOS 14
EXECUTIVE SUMMARY
Earlier this year, Apple announced new                Although the updates were originally set to
data and privacy changes that will have               launch with iOS 14 in September 2020, they
substantive business implications for any             were pushed back to 2021. Brands need to
organization that advertises or operates              take action now to avoid significant business
on mobile. With these changes, Apple’s                impact in the new year:
identifier for advertisers (IDFA – a physical
device ID that powers much of today’s                 1. Providing value in exchange for customer
mobile advertising) essentially becomes an               data and handling that data responsibly will
opt-in feature.                                          give brands an edge in winning and keeping
                                                         consumer trust.
                                                      2. Brands must update their data activation
                                                         strategy to account for changes to the
                                                         ad-tracking landscape.
                                                      3. Finding new measurement and reporting
                                                         strategies will be essential to evaluating
                                                         return on marketing investment once users
                                                         must opt-in to IDFA.

2    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
HOW TO OVERCOME THE iOS 14
WHAT’S CHANGING
AS PART OF iOS 14
The user experience changes introduced in             Now that Apple’s identifier for advertisers
iOS 14 reflect evolving consumer attitudes            (IDFA) will be opt-in for every app, brands
about privacy and data use. Recognizing               will no longer be able to rely on this tool to
that consumers want more control, Apple is            determine if individual consumers clicked on
giving them the ability to opt-in to both ad          an advertisement in an app. Brands will need
tracking and sharing their identities when they       to find alternative methods to gather precise
first open websites and apps in iOS. Those            information on which channels are working.
decisions will give users much more control
over how their data is collected and used.            These sweeping changes to user privacy
Against this backdrop, brands must move               and data use will ultimately impact business
toward providing more value to consumers              functions that manage return on marketing
who are less inclined to share their data.            investment – from marketing organizations
Prioritizing responsible data usage and               to finance and even procurement.
transparency will provide a competitive edge.

    Fortunately, with the changes delayed until early next year, marketers have more time
    to prepare. [1] They need to take action. Marketing partners like Facebook are also
    proactively taking steps to help their partners prepare for the changes while reducing
    unnecessary disruption, ensuring consumer needs continue to be met.

3    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
HOW TO OVERCOME THE iOS 14
THE IMPERATIVES
    FOR ADVERTISING
    WITHOUT IDFA
                                                                                Accenture’s 2019 Pulse survey results showed that of
                                                                                the 8,000 consumers surveyed…

1
    DIFFERENTIATE YOUR BRAND WITH RESPONSIBLE
    DATA HANDLING AND A VALUE EXCHANGE
                                                                                     51%               of consumers think invasive
                                                                                                       ads are on the rise [2]
    For marketers, data handling is a competitive differentiator.
    Brands that maintain transparency and strict data governance
    and share initiatives around managing customer data with key
    stakeholders build more trust with the brands and companies
    they’re engaging with. This will become even more important as
    the data landscape evolves. Increasing a brand’s first-party data
    and entering into strategic data alliances are two key strategies.                                 of consumers say a brand has

    One way to increase a brand’s first-party data is by incentivizing
                                                                                     71%               communicated in a way that
                                                                                                       was too personal [2]
    customers to share their data through “value exchange” strategies.
    Many consumers are reluctant to opt-in to sharing their data because
    of permission fatigue: They share their data, only to find it is used
    in ways that make them uncomfortable. In Accenture Interactive’s
    2019 See People Not Patterns survey of 8,000 consumers, 51%
    percent said invasive ads were on the rise and 71% said a brand                                    of consumers agree that
    had communicated in a way that was too personal. But at the                                        it’s important that every
    same time, 93% of consumers agree that it’s important that every
    interaction they have with a brand is excellent. [2] To deliver excellent
                                                                                     93%               interaction they have with
                                                                                                       a brand is excellent [2]
    experiences, brands need to be relevant and understand their
    consumers – something that’s difficult to do without enough data.

    4    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
HOW TO OVERCOME THE iOS 14
Brands will need to find ways to build and retain consumer trust and confidence as consumers
    demand increased transparency, privacy and control [3] over how their data is used. They will also
    need to take into account a shift in customer expectations related to data and privacy and update
    their strategies on how data is collected, managed and activated.

KEY CONSIDERATIONS FOR DATA HANDLING
AND VALUE EXCHANGE:

    Lean into your value exchange                           Make data governance a top priority          Loyalty, rewards and subscriptions
    strategy – Reduce permission fatigue                    – Ensure the data collected and stored       – Identify ways to collect customer-
    and build consumer confidence                           has proper user consent and can be           level information while being
    with strategic opt-in messaging and                     appropriately leveraged for media            transparent and offering value. Loyalty
    incentives for customers to share their                 execution purposes.                          and subscription programs are going to
    data with your brand.                                                                                be increasingly important, but they will
                                                                                                         not be adopted unless the customers
                                                                                                         can recognize the value exchange.

5    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
2   REIMAGINE YOUR DATA STRATEGY

    With the ad-tracking landscape in the midst of unprecedented
    transformation, marketers should rethink both their ad-targeting and data
    strategies. Marketers need to reach the right customers, at the right time,
    with the right message to achieve conversions and ultimately measure
    ROAS (return on ad spend). The iOS 14 updates, combined with preceding
    privacy regulations (GDPR, CCPA, ITP, APPI, LGPD, etc.) and the forthcoming
    cookie-less future, [4] have a compounding impact on marketers. The decline
    of third-party cookies, which are used for audience-based ad tracking, is
    looming, and companies must prepare for a cookie-less future.

    On top of this, brands will have to adapt to the App Tracking Transparency
    framework arriving with iOS 14. Under this framework, users will need to
    grant permission for:

    • Their user/device data to be leveraged for ad targeting
    • Ad tracking by third-party analytics software development kits
      (also known as SDKs), the mobile equivalent of cookies
    • Sharing data with data brokers

        Companies that want to understand how their ads are performing and
        target consumers effectively must rethink their ad-tracking and first-
        party data acquisition strategies. Many current methods will be harder
        to use as consumers transition to iOS 14. For instance, a brand will
        not be able to send push notifications to specific consumer segments
        unless those consumers have opted into receiving them.

    6    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
The table below tactically highlights how app-based segments (such as targeting
“fitness enthusiasts” based on apps downloaded) for targeting could be at risk.

    PRE-iOS14 AD TARGETING                                                 POST-iOS 14 AD TARGETING

    Behavioral and Audience Based Mobile Targeting: Targeting              Contextual Mobile Targeting: Targeting will be based only on data
    look-a-like audiences with in-app advertising and cross-site           provided by end content providers suggesting details about the
    advertising based on a defined set of attributes                       intended audience vs. the actual audience

    In-App: Push notifications to customer segments focused on             In-App: Based on in-app session behavior, contextual targeting
    exclusive offers on products and services of relevance                 (push notifications) can be activated with explicit user opt-in to
                                                                           IDFA tracking
    Retargeting:
    • Paid Social: Retargeting this segment with exclusive offers          Retargeting:
      and events                                                           If a user opt-outs of tracking, brands cannot share any consumer data
                                                                           with third parties for site or app ad targeting purposes. Brands must
    • Paid Search: Bidding on keywords that align with top attributes      relay on opted-in first-party data for ad targeting to facilitate
      of a segment                                                         retargeting on user specific identifiers
    • Display: Creating an audience based on a segment for display
      campaign retargeting in-app and across-third party sites             Standard Reporting: Refreshed audience segments will need to be
                                                                           applied to standard reports for analysis given the fact that historical
    Standard Reporting: Applying an audience segment across reports        segment data (e.g. pre-iOS 14) will not be permissible for targeted
    to deepen analysis of customer journey and critical business metrics   advertising, storage, or use

    Suppression: The removal of certain audience targets based             Suppression: When a user opts-out, suppression targets can no
    behavior indicating that the group should not, for any number of       longer be used to prevent ads from being served to the wrong
    reasons, be considered the target for an ad or campaign                audience based on previous or current behavior

7   HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
Users are demanding greater privacy and transparency, but they still expect personalized
    experiences. [2] Meanwhile mobile brands and predominately ad-supported businesses rely
    heavily on digital advertising to drive revenue.

KEY CONSIDERATIONS TO HELP MARKETERS
PIVOT THEIR DATA STRATEGIES:

    Focus on strategic alliances with innovative data products                    Integrate your first-party data server-side for resilient
    – Consider clean rooms, which provide advertisers privacy-                    targeting – Marketing partners will be able to facilitate
    safe access to data with events tied to various user IDs, for ID              retargeting by leveraging any number of user-specific
    management. For example: Google Ads Data Hub, Facebook                        (versus device-specific) identifiers to target individuals:
    Advanced Analytics, Adobe Experience Platform, Amazon                         email addresses, phone numbers, etc.
    Marketing Cloud, LiveRamp Safe Haven, etc.

8    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
3   RETHINK MEASUREMENT AND REPORTING

    For marketers, IDFA is currently the key method for mobile attribution that
    protects consumer privacy while still allowing for data to be extrapolated.
    For instance, brands can use in-app events to track acquired channel or
    behavioral data. [5]

    Mobile attribution lets marketers identify the best-performing channels
    and determine future marketing budget allocations. It equips marketing
    teams with the necessary insights to evaluate the effectiveness of their
    advertising campaigns, budgets and target audiences. For instance,
    brands can measure the success of mobile advertising, such as app-
    install campaigns, across social channels including Instagram, Snapchat
    or Facebook. That will change when Apple makes IDFA an opt-in for
    every app and, in doing so, greatly reduces its effectiveness. Without
    IDFA, attribution will happen through Apple’s SKAdNetwork [6] framework,
    which intentionally aggregates campaign-level insights.

        While advertisers will have a sense of which cohorts are
        performing, they won’t have enough granular information
        to easily price impressions.

    9    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
KEY CONSIDERATIONS FOR ATTRIBUTION
AND REPORTING UPDATES:

     Find alternatives to                      Create new integrated        Reset goals and                  Increase your
     identity resolution                       ecosystems for sales         reporting – Given that           development resources
     – Brands that use IDFA for                – Through the creation of    log-level data ingestions will   – The SKAdNetwork
     data stitching, such as                   integrated experiences       not populate IDFA for most       will require additional
     combining impressions                     where content, ads and       user interactions (clicks,       development resources
     and app events, must                      native commerce exist on     events, impressions), brands     to configure and maintain
     begin to explore alternate                a singular platform (e.g.,   will have to pull existing       manual implementations.
     solutions (e.g., graph                    Instagram and Instagram      reporting to understand the
     data) that include web                    Checkout), brands can        current composition of iOS
     and app activity.                         create a closed-loop         users and how IDFA is being
                                               ecosystem that will          used in their organizations.
                                               boost the attribution and    Forecast the expected
                                               optimization of sales.       change in performance
                                                                            based on opt-in rates.

10    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
MOVING FORWARD
Prepare for an ecosystem transformation by taking these next steps.

     1                                                     2                                                 3

TAKE STOCK OF HOW NEW                                     GET TACTICAL AND                                  UNDERSTAND
DEVELOPMENTS AFFECT                                       BE PROACTIVE                                      LIMITATIONS
YOUR BRAND

• Set up a meeting with key mobile marketers              • Acknowledge that perceived ROI for mobile       • Apple has not prescribed any limitations on
  to acknowledge the changes. Where                         campaigns will be different when the IDFA         how to communicate the value exchange
  applicable, use an industry expert to provide             changes take effect. Advertisers may see a        that comes with opting into providing data
  a point of view.                                          decrease in audience size as people update        to users, which gives brands the chance to
• Begin building a strategy to mitigate                     their devices, depending on the proportion        be creative.
  these changes, including enhancing the                    of iOS users in their Mobile App Custom
                                                                                                            • Advertisers should connect with their Apple
  first-party data strategy, building stronger              Audiences.
                                                                                                              representatives to review the new policies
  value exchanges, quantifying impact, and                • Continue to steer away from reliance on           and take the necessary steps towards
  designing/implementing new tools to                       third-party cookies for advertising and use       compliance.
  address these changes.                                    server-side tools (e.g., Tealium EventStream)
                                                                                                            • Brands can leverage the terms and
                                                            that leverage first-party customer data for
                                                                                                              conditions in social media apps to ask a user
                                                            targeting, optimizing and measuring ad
                                                                                                              to show ads and share their IDFA to fully use
                                                            campaigns.
                                                                                                              the app.
                                                                                                            • Lean on experts to better understand the
                                                                                                              App Tracking Transparency framework to
                                                                                                              create custom solutions. [7]

11       HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
REIMAGINE
DATA STRATEGY
WITH A TRUSTED
PARTNER
While these topics of value exchange, media execution, and
attribution are daunting among multiple competing priorities,
there is no doubt that the privacy-centric functionality within
iOS 14 will gain traction and momentum globally in the coming
months. Accenture Interactive can help brands leverage
platforms, skills, tools, creativity, technology, systems, and
services to create the best experiences for their customers
as they work to provide greater value exchange for customer
data, focus on responsible data handling, update their data
strategy, and find new measurement and reporting strategies
to reflect the significant changes this update will bring.

12   HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
Get in touch to learn more about how to transform your
     organization for iOS 14 and a cookie-less future. We are
     here to help your business navigate the changes ahead.

Rebecca Lee                                            About Accenture:
Managing Director, Accenture Interactive               Accenture is a global professional services company
rebecca.j.lee@accenture.com                            with leading capabilities in digital, cloud and security.
                                                       Combining unmatched experience and specialized
                                                       skills across more than 40 industries, we offer
Ankit Mehta                                            Strategy and Consulting, Interactive, Technology and
                                                       Operations services—all powered by the world’s largest
Personalization & Marketing Analytics Lead,
                                                       network of Advanced Technology and Intelligent
Accenture Interactive
                                                       Operations centers. Our 506,000 people deliver on the
ankit.b.mehta@accenture.com                            promise of technology and human ingenuity every day,
                                                       serving clients in more than 120 countries. We embrace
                                                       the power of change to create value and shared
Catherine Lansing                                      success for our clients, people, shareholders, partners
Personalization & Marketing Analytics Expert,          and communities. Visit us at www.accenture.com.
Accenture Interactive
catherine.l.lansing@accenture.com
                                                       About Accenture Interactive
                                                       Accenture Interactive is reimagining business through
                                                       experience. We drive sustainable growth by creating
                                                       meaningful experiences that live at the intersection
                                                       of purpose and innovation. By connecting deep
                                                       human and business insights with the possibilities of
                                                       technology, we design, build, communicate and run
                                                       experiences that make lives easier, more productive
                                                       and rewarding. Accenture Interactive is ranked the
                                                       world’s largest digital agency by Ad Age and has been
                                                       named a Most Innovative Company by Fast Company.
                                                       To learn more, follow us @AccentureACTIVE and visit
                                                       www.accentureinteractive.com.

13    HOW TO OVERCOME THE iOS14 IMPACTS TO CUSTOMER EXPERIENCE
Sources:                                                           Disclaimer:
1.   https://www.macrumors.com/roundup/ios-14/                     This document has been published for information and
                                                                   illustrative purposes only and is not intended to serve
2.   Accenture: See People Not Patterns - https://
                                                                   as advice of any nature whatsoever. The information
     www.accenture.com/_acnmedia/PDF-110/
                                                                   contained herein and the references made in this
     Accenture-See-People-Not-Patterns.pdf
                                                                   document is in good faith, neither Accenture nor any
3.   https://developer.apple.com/news/?id=hx9s63c5                 of its directors, agents or employees give any warranty
4.   https://www.adexchanger.com/data-driven-                      of accuracy (whether express or implied) nor accepts
     thinking/how-to-own-data-and-measure-                         any liability as a result of reliance upon the information
     performance-in-a-cookie-less-world/                           including (but not limited) content advice, statement
                                                                   or opinion contained in this document. This document
5.   https://www.singular.net/blog/limit-ad-tracking-              also contains certain information available in the public
     privacy-checkup-in-2020/                                      domain, created and maintained by private and public
6.   https://developer.apple.com/documentation/                    organizations. Accenture does not control or guarantee
     storekit/skadnetwork                                          the accuracy, relevance, timelines or completeness of
                                                                   such information.
7.   https://developer.apple.com/app-store/user-
     privacy-and-data-use/
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