mCommerce groups are having to pay higher advertising prices following Apple’s privacy changes.
The new rules make it much harder to track iPhone users or target them on the device.
The average conversion for eCommerce marketers jumped 200% for tracked users and 155% for non-tracked users, according to research from mobile ad experts Moloco.
The proportion of tracked users on Apple devices dropped from 73% at the start of 2021 to 32% by the end of June 2021.
At the same time, eCommerce is booming fuelled by a growing number of mobile shoppers amid the COVID pandemic. eCommerce sales jumped 9.1% to $222 billion in 2021.
“ATT has had a seismic effect on the landscape of mobile advertising,” explained Anurag Agrawal, vice president of product at Moloco. “Because of the changes made by Apple, it has become harder to find the right users. Targeting is more imprecise now, which manifests itself with higher costs to acquire a particular user.”
One way that eCommerce marketers can adapt and improve their spending is to diversify their traffic sources.
Moloco proposes that marketers should have a budget to experiment and optimise campaigns with.
Because audience tracking is harder, a growing number of retailers are using contextualised ads.