IOS 14: Impact on App’s Monetization Strategies

With Apple’s new stand on privacy, the release of iOS 14 which is scheduled for Q3, 2020 will have a major impact on some app’s ability to monetize. Now users will see a new privacy screen when installing a new app. This screen will ask if a user allows to have access to devices IDFA (this is a unique identifier used in most advertising platforms which allows for targeting, measurements, attributions and programatic advertising).

It is expected that most users will not allow apps access to their IDFA. As with other previous releases Google tends to follow suit to Apple’s new features. What this means is that your Android phone may have the same impact within a year. Therefore, users IDFA will no longer be able to track users between apps. While, users typically welcome privacy laws, in the long term online identity will be dominated by a few big players mostly Apple, Google and Facebook who control your login via email or auto login.

So what does it mean for advertisers? It means that re-targeting will not longer be available, without IDFA it is harder to target users based on their behavior, therefore making it more expensive to reach their target audience. Therefore, decreasing eCPMs in the ad ecosystem. In other words, all apps relying on ads for monetization will see a decline per user. There does not seem to be any alternatives to combat this! Keep in mind, it is not only the ability to target that will be hit but also a way to measure the success of your ads!

So what do App Monetization strategy look like in the future? 

The key is diversification, relying on one source for income for your App’s is going to mean major disaster. Last year Apple impacted offerwall ad installs, next would be the ads. The only ad system the currently is not relying on IDFA is Reward Surveys. Alternative monetization includes: in-app purchases, affiliate marketing and eCommerce solutions.

If you currently have an app in the marketplace, make sure that you prepare for the iOS 14 release in order to ensure minimum disturbance for your users. If you need to hire a iOS freelancer to help update your iOS app to be iOS compatible look no further, Brian Kayfitz Development can help!