iOS 14.5: The Pros and Cons for Marketers
Apple has recently announced a new iOS 14 update, which will include revamping the iPhone’s privacy settings. While this may sound like just another update, it’s actually changing the way apps can access your data.
What
The iOS 14.5 centers around privacy updates for individual apps. This requirement allows each app to ask users for permission to track their behavior, which they can accept or deny. Apps in the app store will also need to disclose this to let users know what data it will collect, if they do opt-in. An example of what apps could collect that would require user approval would be targeted advertisements for other companies on apps or sharing location data. For example, this update really spotlights Facebook. With Apple now showing users what information Facebook collects about you (which is a lot!), more users might choose to opt out.
Why is this happening?
Apple’s goal is to keep their customers happy, safe and protected. Craig Federighi, Apple’s Senior VP of Software Engineering, says Apple believes privacy is a fundamental right, and its teams work every day to embed it in everything they make. Although this update is a good thing for Apple and its users, it may not be for brands who need to reach their target audiences. Let’s take a look at the pros and cons:
The Good
More transparency: Brands can be more transparent with customers about what data is being collected. Apple even released “A Day in the Life of Your Data,” a report showing users how a family’s data is collected on any day.
Credibility for Apple: In releasing this update, Apple is gaining more credibility with their customers. They feel more valued knowing that the brand cares about their input.
The Power of Choice: With this update, consumers are empowered to make their own decisions about what they want to share with their favorite apps.
The Bad
Less personalized ads: Those customers who choose not to have apps track their data may have less personalized ads and app experiences.
Small Businesses Adjusting: small businesses who track their own performance and do their own market research may have a hard time adjusting to this. With less experience managing custom solutions,this chance could hinder their growth.
Targeting for Advertising: Advertising may become less efficient and effective because brands can’t reach their optimal audiences in ways that they once could.
Looking at the pros and cons of the iOS 14 update, this could be a good thing for users, but might affect marketers and the way they advertise to their target audience. Stay tuned for our next blog to see Indie’s predictions and a more in-depth look at the update.
