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Watch out for this Square Apple with sharp edges

by 3dots-blog December 24, 2020
Watch out for this Square Apple with sharp edges

Breaking News: Apple announces product & policy changes that will affect data sharing across iOS.

This decision might have been taken by ‘Square’ (sic) Apple with an intention to keep their customer’s data safe and their privacy untouched. But, this move has some sharp edges that you might want to watch out for.

The recent metamorphosis in Apple’s product and policy changes is certainly set to impact data sharing and digital marketing across iOS platform in a huge way. The challenges faced by digital advertising and social media marketing will predominantly affect the growth of small businesses and the free internet. This was what Apple announced at its Worldwide Developers Conference (WWDC) in June, 2020.

That’s probably a double-edged sword when it comes to enhancing the advertising performance on the digital platform and proactively protecting data privacy of the customers. Free and personalized ads have helped small businesses grow in a huge way. They have been an essential element for the growth of ad-supported businesses. Facebook, however, agrees to disagree.

THE GLOBAL SOCIAL IMPACT

Apple has proposed changes in their data sharing and data privacy policies and it can extremely curtail the effectiveness with which businesses really reached, understood and engaged with their customers across various platforms. This decision might severely impact the ability to realize the performance of a product and take further steps related to marketing, sales and advertising budgets. Though gradual, this step by Apple might result in the overall decrease in ad performance and personalization, and increase the cost per action.

Online ad revenue of Facebook and Google in India ascended to INR 11,500 crore in the financial year of 2019-20, out of which the search engine kingpin clocked INR 9,203 crore from ads while the social media giant garnered INR 2,233 crore. According to a report by Dentsu Aegis Network Ltd. the online ad spend is expected to increase from INR 13,683 crore in 2019 to INR 28,249 by 2022. Speaking of the revenue generated by these dynamic duo – Facebook India’s overall revenue increased 71% YoY to INR 892 crore and the profit jumped 84% to INR 105 crore, as per the filings by Registrar of Companies. On the other hand, Google India’s overall revenue plummeted to INR 4147 crore in the financial year of 2019 because of changes in its accounting standards. However, its profits grew 16% to 473 crore.

Be it for using a cab, or eating at a restaurant, learning, taking medicines, or watching a game, India has surely gone the online route. The sheer numbers speak for themselves –

  • 23% YoY growth is seen in online shopping in India which is likely to continue till 2021
  • 627 million Indians have access to internet
  • 351 million users are on Social Media platforms
  • 270 million users have access to Facebook
  • 48% of people surveyed have reported that their last online purchase was due to a Facebook ad

Source:

https://www.bloombergquint.com/business/indian-entities-spent-dollar16-billion-on-facebook-and-google-ads-in-2018-19 https://mopharma.com/blogs/digital-marketing-benefits-for-indian-economy.html

SNOWBALLING CHALLENGES

With Apple’s new policies, it will be tougher for smaller businesses to compete with big names in the industry. The ease, with which they could effortlessly reach their existing and potential customers with the help of personalized digital ads, now seems to be a herculean task. Specifically, some of these changes made by Apple will hamper the ability of small businesses to –

  • Ensure that the ad reaches the right audience at the right frequency
  • Deliver ads effectively to people on the basis of the engagement ratio with your business
  • Evaluate and detail out the rate of ad conversions from certain customers
  • Regularly reach out to iOS users regarding the app updates

GIVING PRIVACY ITS DUE IMPORTANCE

Without predictable cost & analysis, and personalized ads, it would be difficult for businesses to create that impact and their efforts would get diluted on vague grounds. Nevertheless, this move by Apple has given privacy its due importance. People who did not want their phones and mails to be hoarded with spams every day, can now breathe in peace. Facebook has reluctantly agreed to their terms to prevent themselves being blocked from App Store, but looking at the brighter side, there are chances that many others would find newer ways to reach out to customers and that’s where the future-ready advertising agencies step in – to deliver innovative solutions! However, Apple CEO, Tim Cook tweeted that users have the power to allow or deny Facebook from tracking their activities across other companies, apps and websites.

We believe users should have the choice over the data that is being collected about them and how it’s used. Facebook can continue to track users across apps and websites as before, App Tracking Transparency in iOS 14 will just require that they ask for your permission first. pic.twitter.com/UnnAONZ61I

— Tim Cook (@tim_cook) December 17, 2020

At 3 Dots Design, we believe that the future has already begun yesterday. We constantly seek for ideas and craft designs that the future customers understand and need. Our dynamic team of digital strategy & research are on constant lookout for such news that help us know the market better and deliver communication that’s not just creative, but fair & square, and up-to-date. By leveraging on the market opportunities that the current situations pose, 3 Dots Design goes full guns blazing with our rationalized facts and make sure our clients are well-informed about the market where we mutually grow.

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