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On April 26, iOS 14 finally hit consumers’ phones.

The new iOS 14 update on Apple iPhone devices has significantly changed the way data is collected & how social media advertisers are able to use it. A major part of the update involves automatic opting users out of being tracked by apps instead of automatically being opted-in. Users on iOS 14 are getting notifications that ask them whether or not they would like to allow a specific app to track them or not.

This has prompted a bit of a PR war between Facebook and Apple, which we previously summarized. Now that the update is live, here are a few things we’re seeing as well as our top tips for marketers who want to successfully adjust to this new reality.

What we’re seeing

Audience sizes are shrinking

As people opt out of being tracked, custom audiences that were helpful for retargeting are now shrinking.

For example, in the past we were able to create a custom audience of people who visited our website in the last 30 days and target those who have not purchased. Now, the people who have opted out of being tracked will no longer be included in those audiences. Currently only 5% of people being served the notifications are opting in to being tracked. In addition, 3% of users on iOS 14 are using “Restricted” App Tracking, where apps cannot even ask for tracking.

Costs are going up

Because audience sizes are shrinking, the cost to reach people left in those audiences are going to increase. As we compete with other brands for impressions on the people who have opted-in, it is likely that we will see an increase in CPMs & CPRs.

Data is delayed, limited, and/or extrapolated

With the changes to iOS 14, the data reporting from ads is being affected in a few noticable ways, especially when it comes to tracking user behavior on non-Facebook platforms such as on your website:

• Data is delayed – For example, Facebook is no longer reporting on interaction events in real time. Instead, they are only able to report them at the time the SKAdNetwork API reports them, which can be delayed by 24-48 hours.

• Data is limited – Instead of tracking an unlimited number of website events, the SKAdNetwork API now forces advertisers to allocate only up to 8 events that are important for your business, and they need to be prioritized because you can also only receive one event per user. The SKAdNetwork API will send back the highest priority event that the consumer completed back to Facebook Ads Manager.

• Data is extrapolated – In the new model, the data Facebook is receiving is aggregated only at the campaign level. At the ad set & ad level, the data is being extrapolated using statistical modeling.

• Some Breakouts are unavailable – Because of the campaign-level aggregation, helpful breakouts (like by age, gender, placements, time of day, etc.) are no longer available. Also, the data that is reliant on another source outside of Facebook would not be able to be broken down beyond the campaign level. One helpful note is that, so far, UTM codes are still able to help break down data (via Google Analytics). As long as they are set up properly, you can still collect valuable data that can help us make informed decisions.

5 Things You Need to Do

Anyone running social ad campaigns should be adjusting strategies and processes to account for the challenges in this new reality and to set yourself up for the most success. Here are the top 5 things you should do.

1) Complete the checklist of items Facebook has encouraged

Facebook has shared several tips on how to adjust campaigns moving forward. The important items include:

• Verify your domain - Verifying your domain allows you to manage the permissions over your links in Facebook on both Paid & Organic content. It prevents misuse and allows you to prioritize the events that your site is pushing back to Facebook. Here’s a helpful article on how to get started.

• Set up event prioritization in Facebook - Since you are only able to collect data on one event, you have to tell Facebook how important each event is. Here’s Facebook’s recommendation on how to set it up.

• Implement Facebook’s Conversion API - As Facebook explains it, “the Facebook Conversions API allows advertisers to send web and offline events from their servers directly to Facebook. Server events are linked to a pixel and are processed like browser pixel events. This means that server events are used in measurement, reporting, and optimization in the same way as browser pixel events.” There are a few third-party integrations that help set up CAPI integrations, but you can also set it up directly within your website, if you are able. Here is more detail on the conversion API. While it’s not a total work around for iOS 14, it does provide more detail than you’d get without it implemented.

2) Allow data time to trickle in before acting on it

Since the data is delayed, you want to make sure you are making important decisions on your advertising campaigns based on a whole set of data, not just part of it. Give your data at least 36 hours to fully collect in the system before you make any big changes so you can be as informed as you can be.

3) Explore ways to diversify your advertising

By diversifying your advertising dollars, you increase the likelihood that you are going to hit users that may have opted in to being tracked by other applications or who have not updated to iOS 14 yet. Using platforms like Pinterest, Snapchat, or YouTube could provide you with a whole new audience that you may no longer be able to reach on Facebook or Instagram.

4) Utilize data collected from within the world of Facebook

While several data points are impacted by iOS 14, there are still great data points available within the Facebook universe.

Facebook custom audiences like Video Viewers are a great option to use in lieu of audiences like website visitors that has been impacted by iOS 14. Since the data from the Video Viewers audience is collected within Facebook and doesn’t require transferring data from another source back to Facebook, it will not see the same impact that the others are.

5) Capitalize on the first-party data you have

Whatever first party data you do have, keep it updated in Social Ad Platforms. Upload custom lists for people who have subscribed to your newsletter or bought directly from your Shopify store to provide Facebook with another data point to work with. The more first-party data you have, the better your ads will perform.

How are you bracing for the iOS 14 changes? Let us know on LinkedIn!