It appears that Apple's controversial App Tracking Transparency (ATT) update (I call it the Applecalypse) is having a significant impact on Facebook, and in a recent announcement, they describe some of the specific ways in which ad metrics reporting has been affected by the new privacy guidelines.
For a quick context: In April, Apple launched its guidelines, which directly ask iOS users to opt in to activity tracking within each individual app.
We knew that many would likely choose to disable data tracking as a result. Recent studies indicate that the majority of iOS users are opting out of tracking , and while it has decreased slightly over time, it is still well above 60%.
One of the adverse effects for us advertisers is that we have less data to continue, scale, and implement retargeting strategies. Facebook has been greatly affected by this, as it has lost access to a wide range of tracking data that had powered part of its targeting engine.
According to Facebook :
“We expected the recent iOS updates to have a greater impact in Q3 compared to Q2. We know many of you are experiencing a greater impact, just as we are.”
The most specific impact for Facebook here is on conversion reporting: now that Facebook can no longer track conversions in the same way, it has been working to implement a new system that estimates activity based on system learning.
So far, those estimates are not being met:
“Our estimate is that, overall, we are underestimating iOS web conversions by approximately 15%; however, there is a wide range for individual advertisers. We believe that real-world conversions, such as sales and app installs, are higher than many advertisers report.”
Without accurate conversion data, we can't know what isn't working. Most large advertisers and agencies are working on how to counter this by supplementing their Facebook data with information from Google Analytics and other platforms, but it's having a significant impact, especially for smaller brands that lack the knowledge and analytical capacity to verify the information provided by Facebook.
For many, this simply means they're seeing fewer conversions and may not fully understand why. This could become a major problem for Facebook if advertisers look to spend their money elsewhere.
Facebook has been working on several solutions based on estimations and data prediction that will provide modeled data on conversions to help provide a more accurate picture of ad results.
"We are optimistic about our multi-year effort to develop new privacy-enhancing technologies that minimize the amount of personal information we process, while still allowing us to show personalized ads and measure their effectiveness."
Facebook is working on this, but it's still in the development stage, which means that significant impacts on reporting as a result of the AT&T update will be seen at least by the next holiday season.
Facebook has provided a series of recommendations to "help" us mitigate the damage. The reality is that these tips boil down to giving the system more time, so that ideally, we continue investing in Facebook ads.
Facebook's key tips include:
- Give it time before analyzing performance : Facebook's main advice is that advertisers should give the system more time to adapt before making changes to underperforming campaigns. " Given the nuances of lagged data and modeled reports , consider waiting a minimum of 72 hours or the full duration of the selected optimization window before evaluating the performance of conversion-optimized campaigns." Facebook's system relies on machine learning to identify the triggers for optimal performance and the types of people who respond to each ad, and as such, it needs time to gather that response data to ensure it's maximizing engagement.
- Follow best practices during the learning phase to help the delivery system learn how best to serve your ads. Again, this is time-consuming. Facebook's ' Learning Phase ' best practices suggest that it takes around 50 optimization events over a 7-day period to get a complete picture of the best response to your ad, which will then help Facebook optimize ad delivery in the future. During the initial 'learning phase,' when Facebook's systems are figuring out what types of people are responding to your ads, performance is less stable, but over time, that decreases and the CPA will level off. Facebook says that in the current situation, adhering to the learning phase is more important than ever.
- Configure the Conversions API – The Conversions API helps create a direct connection between website events and Facebook, which can also mitigate the impacts of ATT. “Adding the Conversions API to your existing setup will help you optimize your ad campaigns, lower your cost per action, and more accurately measure campaign results, while offering the same privacy protections we’ve implemented in our other business tools.”
In addition to this, Facebook also suggests that advertisers 'consider all available tools' to measure the performance of their campaigns, including those not directly linked to Facebook.
The challenge for non-specialists is that they need to know which tools work best, and that may require a level of expertise and knowledge beyond Facebook itself.
Facebook provides additional suggestions and notes in its full impact overview , which is an important read for those planning their holiday campaign approach. It's important that if you advertise on Facebook or provide ad services to your clients, you read the entire statement.
The reality is that we need more time to fully understand the impact of AT&T's changes, and the best thing you can do if you're not familiar with all these processes is to hire someone to help you with your advertising campaigns, as more privacy changes are expected that could affect your ad performance during peak season.
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