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Apple has announced upcoming privacy changes that are leading marketers to rethink their data collecting processes. Apple will soon require apps to clarify data tracking practices and obtain explicit consumer consent before allowing tracking.
People are spending more time online, and more than half of those users are accessing the internet through mobile devices. Moreover, App Annie, a data analytics provider, found that mobile users now spend 10 out of 11 minutes of their mobile internet use on apps.
Despite the prevalence of app use, consumers are skeptical about how their personal information may be misused. A survey conducted in 2020 by GlobalWebIndex found that almost two-thirds of social media users reported concern with how their personal information is used. Perceptions differed across social media platforms, with users reporting more trust in some social media providers over others.
While Apple’s privacy-enhancing changes may alleviate consumer concerns, they have generated significant pushback from companies with apps, causing Apple to delay the consent requirement from its previous release date. Although marketers need to adjust their practices, those who also implement savvy privacy policies will improve public perception, avoid potentially costly legal exposure, and stay ahead of inevitable regulatory developments.
How Data is Tracked
When users visit websites (or apps), “cookies” are left on their devices. Cookies store text files on devices, which help websites/apps recognize users and track their information. For example, tracking systems allow users to save products in shopping carts and have a browsing continuity experience. Cookies also enable website/app operators to collect user information and track them even outside of the operators’ platforms.
Currently, Apple allows advertisers to use an Identifier for Advertisers (“IDFA”) to track user information. Each IDFA is assigned to a specific device. Advertisers use the IDFA to compile information about the specific device without tying the data directly to the person’s name or contact information. According to Apple, apps currently include an average of six “trackers” per app that collect and track information. Although the information is intended to be anonymous, intermediaries known as “data brokers” can compile data collected from other apps and websites to create a comprehensive profile linked to an IDFA, which creates privacy concerns and mistrust with consumers, or at least those who know about this practice.
What is App Tracking Transparency?
Apple is introducing App Tracking Transparency (“ATT”) in “early spring“ of 2021. The ATT requires all app developers to obtain explicit consent directly from users before tracking their IDFA. Apps that track data across apps or websites will be required to include a pop-up message asking users to choose between “Allow Tracking” or “Ask App Not to Track”. Users who decline to provide consent will not be tracked when they move between services.
The Way Forward…
