Android advertising costs increase after iOS user tracking restrictions?

From the end of April, iOS 14.5 introduced an app tracking transparency structure that requires explicit permission from the user when an app tracks users across other webs and apps. Two weeks after its launch, some internet advertisers are starting to cut spending on iOS and increasing spending on Android, according to a survey.

The Post-IDFA Alliance is a mobile advertising company industry association established by ATT to respond to this policy change, which imposes restrictions on acquiring IFDA and advertisement identifiers per user. According to the report here, data from April 26 to May 9 show that 36.5% of iOS 14.5 users allowed ad tracking. Accordingly, it is revealed that the CPM is decreasing from 2.4% to 8.73%.

The alliance participating companies report that there is a variation in the decline in advertising costs on iOS, but all of them report that spending on Android has increased since the iOS 14.5 delivery. For example, Liftoff increased 8.29% and Vungle increased 21%. Combined with both iOS and Android, marketers may be increasing spending to acquire customers overall.

According to the association, the iOS 14.5 install rate averaged only 12.9% in two weeks of release. It is also noted that in the coming weeks, iOS 14.5 adoption is certainly progressing rapidly, and more data on consumption trends and withdrawal rates will be shared.

Alliance participants appear to be optimistic about the future outlook. Expecting the CPM to rise again as the number of users updating to iOS 14.5 increases and marketers become more confident in publishing ads minus IDFA.

In other words, it is calculated that the negative effect caused by ATT can be compensated by simply increasing the amount of advertisements even without target advertisements. However, Facebook, which took the lead in opposition to the ATT, may also be hit hard as the ad tracker using IDFA was a big source of income. Related information can be found here.