The parent company of Facebook – Meta recorded a loss of more than US$232 billion in value after it reported its annual earnings on February 2, 2022, where weaker-than-expected revenue growth in the next quarter was forecasted. It also said it’s taking a big hit from Apple’s privacy changes, and showed the first quarterly decline in daily active users on record.
In fact, Facebook is not alone as Google has also expressed that ATT (App Tracking Transparency) will reduce the visibility of critical indicators showing advertising effectiveness, affect advertisers’ valuation and bids for advertising, and severely impact the app publisher’s Google advertising revenue on the iOS platform.
The advertising and marketing industry has felt the great impact brought by privacy policy changes from Apple since the iOS 14 update. Revisit our past blog articles to understand more details about the privacy rule changes:
In this article, we discuss key impacts that resulted in Facebook’s revenue downturn and stock plunge, which are directly related to brands’ marketing strategy and approach.
Although the global social media landscape is drastically diversifying, Facebook still remains to be the most popular social network worldwide as of 2021, outperforming every other contester for reach and active users, and Facebook marketing is a staple in nearly every social media marketer’s playbook. ( Source: Statista )
In short, the “opt-out of app tracking” option for users to choose in iOS 14.5 is causing tumult for advertisers who rely on Facebook to sustain their businesses. It is believed that the masses have opted out of letting Facebook track off of Facebook, so marketers can’t be sure if people are buying their products after seeing their ads.
More deeply, the privacy policy changes from Apple impacts Facebook marketing in three key aspects: targeting, reporting, and optimization.
1. Targeting
Firstly, the attribution window was shortened from a standard 28 days to 7 days now. As a result of the shorter timeframes, conversion numbers could decline for Facebook campaigns, which means the retargeting audience pool is a lot smaller.
Furthermore, lookalike audiences that are based on a data source aren’t being tracked correctly anymore, reducing the quality of the audience and ad performance.
2. Reporting
Reporting is one of the most essential parts for brands to understand and learn what the target market is thinking and behaving, so that to tailor their big idea and marketing strategy accordingly.
In terms of the timeliness of reporting, the real-time reporting is no longer there since iOS14, data may be delayed for up to 3 days, which could be disastrous for brands that rely on prompt data where large base of consumer behaviour and preference can be analysed.
On the demographic reporting front, Facebook’s app and web conversions will no longer provide reporting on the delivery and action breakdowns after iOS 14, including age, gender, region and so on. This weakens brands’ ability to conduct targeted analysis on different demographic groups, which is critical for effective marketing planning and programs design.
As for data tracking, conversions took place on users who opted out of Facebook Ad tracking are no longer tracked, resulting in lower conversions recorded in the reports for advertisers.
3. Optimization
Originally, Facebook’s Aggregated Event Measurement (a protocol that allows for measurement of web and app events from people using iOS 14.5 or later devices) limits domains and mobile apps to eight conversion events that can be configured and prioritised. Examples of conversion events include: visit website, add item to cart, purchase, form submission and so on. Data collected from these events is used for targeting, optimization, and measurement.
But now, only prioritised events can use Aggregated Event Measurement data to help improve conversion optimisation. The new limitation emerging is that advertisers can now only optimize one event.
In addition, the new policy provides fewer data points for the Facebook algorithm to use in its optimization processes, and impacting smaller advertisers who don’t have lots of data points from large budgets.
In the next blog article, we will delve in tactical solutions and measures that brands can take for their Facebook campaign.
How can GoGoChart help?
At GoGoChart, we helped over 2,000 brands globally with their mobile and web marketing campaigns since its inception in 2016. The expert team headquartered in Hong Kong and based out in the APAC has advised clients from different industries to adapt and excel amid challenges imposed to global marketers.
Talk to us for more insights and tailor your Facebook marketing solutions.
About GoGoChart
GoGoChart, a tech enabled mobile marketing company headquartered in Hong Kong, being the Google App partner in Hong Kong, its mission is to become the world’s leading mobile marketing technology brand. Since its establishment in 2016, the company has helped over 2,000 brands and apps in more than 60 countries optimize and promote their apps. it has also evolved into an all-rounded digital marketing service provider after winning trust from thousands of brands. Key clients of GoGoChart include Fortune 500 companies, blue chip listed companies and SMEs from the finance, consumer, ecommerce and gaming sectors.
GoGoChart was awarded the Hong Kong Technology Fast and Rising Star Program organized by Deloitte both in 2019 and 2021, the Best Use of Mobile Online Campaign (inaugural season) by Interactive Advertising Bureau Hong Kong (iAB HK) in 2021, and officially became an Affiliated Member of The Association of Accredited Advertising Agencies in 2021. The company’s regional teams are situated in the Philippines and mainland China.
