1. Past and Present of IDFA
UDID VS IDFA(Identifier For Advertising)
Before the advent of IDFA (pre-iOS 6), Apple gave developers access to a user's Unique Device Identifier (UDID) , which allowed developers to track users across multiple apps. Although UDIDs provided tremendous value in properly tracking ads and authenticating across multiple applications, third-party application software began collecting these UDIDs into databases and, in some cases, sold them. Congress ultimately ruled that this violated a person's right to privacy, and Apple ended up having to restrict app access to the device's UDID. To replace UDID, Apple introduced IDFA. Users can turn off or reset their IDFA, while UDID is a permanent device hardware number, and once shared, it cannot be unshared. These changes give users more control over their data and privacy.
-In 2012, Apple launched the advertising identifier IDFA in 2012 in order to avoid leaking the UDID that users cannot change to advertisers.
-In September 2012, after the release of iOS 6, Apple officially launched IDFA, which is used to track the effectiveness of advertising for developers on the premise of protecting users' personal data. In fact, Apple gave an extra half a year, and it was not until May 2013 that the app that obtained UDID was banned.
- In May 2018, Apple launched an advertising tracking framework for iOS — SKAdNetwork
According to Apple's official website, the advertising platform must first register with Apple, and then configure SKAdNetwork. When a user clicks on an ad, the advertiser displays an AppStore product screen with a cryptographically signed parameter that identifies the ad campaign. This allows the advertising platform to track the user's click and installation behavior without obtaining IDFA.
- At the Worldwide Developers Conference (WWDC) held on June 22, 2020, Apple announced that it would update the rules for advertising platforms to obtain IDFA codes in the iOS 14 system .
-In 2021, starting from the iOS 14.5 system, when the APP on the Apple mobile phone and the operator want to access the IDFA on the user's mobile phone, a reminder window will pop up first, allowing the user to choose whether to allow their own information and data to be tracked.
-CAID: The China Advertising Association started to study CAID, trying to bypass Apple IDFA and collect weak information characteristics of users, so as to construct user portraits and realize accurate advertisement push. On March 19, 2021, Apple has issued a warning to app developers and companies on iOS: Do not try to bypass the upcoming app tracking transparency privacy feature, or the app will be removed.
A battle of wits between developers and IDFA in 2021
First of all, Apple announced the user privacy protection program at WWDC20, and soon released SKAdNetwork, and soon the advertising giants including Google registered their own IDs, only Facebook did not move;
In the second round, Facebook, as the leading brother, hid behind the back and asked the younger brothers in the advertising camp to complain, saying that ATT's move harmed the interests of small and medium-sized enterprises, which was not conducive to the epidemic situation;
In the third round, Apple also felt that it was a little anxious, and its steps were a little too big, which involved the lifeline of FB. In order to appease the little brother, it introduced a 15% sharing ratio. Can't get by with money;
In the fourth round, Facebook personally went to battle against Apple in the Wall Street Journal, an American elite media, standing on the moral high ground and confronting Apple;
In the fifth round, Apple officials and Cook directly replied: further clarified the starting point of user privacy protection, believed that user information should be handed over to users, and required developers to submit their own user privacy when submitting new versions on the App Store Information, at this time, developers, large and small, stand by Apple, and Facebook is isolated;
In the sixth round, Google, who was watching the fire from the other side, made its debut, and released two new policies with a very public relations art: 1. Stop the technology development and investment of cross-site tracking. It is clear that it is not the mobile terminal, but the PC terminal first; 2. Announce A more aggressive 15% share ratio than Apple.
With Google's statement, we believe that Google will launch a solution similar to ATT soon, and since then, the entire Internet will be changed again.
2. Impact of new changes in IDFA
1) For Apple users
-Apple has always been a defender of user privacy.
- "Fruit fans" are more willing to believe that Apple is forcing the new IDFA regulations to protect user privacy.
- The content of the advertisements received is becoming less and less relevant, which reduces the time spent using the APP to a certain extent.
-Apple's Search Ads business continues to grow, and will get bigger and bigger over time, at the expense of rivals Google and Facebook.
2) On Apple itself
- Starting in 2019, sales of hardware such as Apple's iPhone, Mac, iPad, and wearable devices are slowing down, while service revenue is gradually increasing. To this end, Apple has transformed itself from a hardware producer into a digital service provider.
- The profitability of platform developers is cut by 40%
- All downloads, user profiles, all positioning will be owned by Apple
3) For the advertising industry
-The change of IDFA policy may lead to thousands of layoffs in the mobile application advertising ecosystem, which will affect game companies, mobile game advertising attribution companies, mobile marketing, buying volume and advertising networks.
-Apple will handle the task of attribution of advertising results itself, taking back a large number of functions in the mobile ecosystem. This is tantamount to cutting off the feet of some mobile attribution companies, such as AppsFlyer, Adjust, Singular and others will be affected. In the name of privacy protections, Apple's offer of ad attribution success will be rather murky.
- The problem with IDFA is advertising efficiency, if you destroy it, it is like encountering destroys the ability of advertising targeting;
-Due to privacy protection, the efficiency of advertising distribution is reduced, which is bad for the digital advertising industry and good for the digital service industry. This is an inflection point of polarization.
4) Impact on the enterprise
- In July 2020, Facebook's CFO said that Apple's iOS 14 operating system may damage its social network's ability to place targeted advertisements; according to Facebook's test, after the implementation of the above policy, advertising revenue may be reduced by more than 50%.
-Facebook's advertising platform is critical for small businesses because Facebook and targeted advertising is the lifeblood of small businesses, allowing anyone to easily promote their products and services to millions of people. We worry that aggressive platform policies will sever this lifeline, which is critical to small business growth and recovery in the pandemic era.
-Forcing the company's business model to shift from a free model to subscriptions and other in-app payments that directly benefit Apple.
- The cost of buying volume for game companies has increased, the channel for buying volume has narrowed, and the verification method SKAdNetwork.
- For publishers or ad networks with multiple large DAUs, the control of IDFA even brings advantages, because Apple has not banned IDFV (developers can still track the usage information of their own applications on user devices), Publishers with a large number of users can not only continue to cross-promote their apps, but also use the number of users to monetize.
3. The resistance of big companies VS Apple’s firmness
-Epic has previously sued the company for alleged monopolistic behavior, and the U.S. Congress is also reviewing the monopolistic behavior of Apple and other technology giants.
-Facebook's advertising platform is critical for small businesses because Facebook and targeted advertising is the lifeblood of small businesses, allowing anyone to easily promote their products and services to millions of people. We worry that aggressive platform policies will sever this lifeline, which is critical to small business growth and recovery in the pandemic era.
4. Background
These things have been accumulated for a long time, from the GDPR in 2018 and the CCPA (California Privacy Protection Act) in January this year, and the upcoming Proposition 24 privacy law vote in California in November. All because of the need for more and more privacy regulation. They're not just building user data protection, they're also regulating how people share user data, which is how you share data with third-party advertisers or developers.
-InMobi's Singhal said, "Every regulatory measure gives these platforms the privilege of raising the walls".
-The issue of user privacy has changed from a technical issue to a commercial issue, and from a commercial issue to a legal and ethical issue.
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