IOS14 IDFAs impact

 

Tim Koschella: Hey Andre Kempe. So with iOS 14 coming in September, and IDFA partially going away, I’m curious, what do you think, how will this affect marketing channels? Because I know you’re running an agency and having done that for quite a while, and also having been on the advertiser side, you know pretty much every mobile performance marketing channel out there pretty well. So I’m curious, what’s your view on the impact on different channels?

Andre Kempe: This can have multiple effects first. We can only advertise on publisher inventory. That’s somehow available to us as advertisers. And if, for example, publishers decide, okay, my monetization goes in the wrong direction. Maybe I stop putting ads inside my app because I have to ask for IDFAs and these kind of things. And have to throw the pop up to ask for it in order to monetize. Well, maybe this has a massive impact on my churn in users. So I rather accept that I don’t have advertising, find different ways to monetize. And then I as an advertiser, I’m losing this inventory suddenly, so I can’t advertise anymore. So this could create a double circle and could have a massive negative impact for us on advertising.

Tim Koschella: So think about that for a minute. Do you think it’s possible that for example, Facebook, if you turn IDFA off, if you turn limit ad tracking on basically that you would see less ads that could have a ripple effect, like everyone turning off IDFA tracking, if you see less ads on your Facebook or Instagram feed.

Andre Kempe: Absolutely. The average multimillion dollars gaming app out there, which still plays one of the bigger roles in advertising, providing inventory in the hyper casual space, maybe, they might decide, Hey, if I’m having a way to high churn, I turn off advertising. I’d rather find different ways. And this will certainly be negative for us as advertisers.

Tim Koschella: But they can’t turn it off entirely either because they make only money with ads like hyper casual games for instance.

Andre Kempe: I mean it’s not happening tomorrow, but I believe they will try to find ways to monetize in different ways.

 

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