Device IDs going the way of cookies..

Apple’s WWDC was a few days ago and there’s one topic people seem to be still talking about: privacy. The company will now require third-party apps to ask permission before tracking users, and are using a nutrition-label-like format to streamline the process.

George Tarnopolsky, VP, Programmatic provides this insight: Users will now get a popup about device id (IDFA) use when they first download an app; the popup will ask whether users allow for their IDFA to be used for ad targeting purposes. This change allows users to opt out of tracking very easily, when apps are first downloaded. App developers will be able to customize this initial popup, for example to illustrate the value exchange from opting into ad targeting. It’s unknown what percentage of users will opt out of IDFA sharing in apps at this time.

At a high level, it is clear that this change will affect the ability of app developers to monetize through ads—and for buyers to buy that app inventory. In the short-term, mobile ad budgets will flow increasingly towards Android apps, which are unaffected by Apple’s change. Long-term, app developers will likely shift more apps to subscription models or require logins. Programmatic buyers will be able to continue leveraging keyword contextual, sitelist, and PMP strategies. In addition, we will likely see an emergence of first party data as the top method for reaching audiences, replacing both browser cookies and mobile device ids.

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