Updated: Mar 10
With Apple’s privacy changes taking place in 2021, limiting the information shared with marketers, we will start to have less data available through our advertising campaigns on Facebook, Instagram, YouTube, and other social media. The changes may make advertising less targetable, but it's not the end of the world. Luckily for us at Harvest Growth, we’ve been doing TV advertising since 2007. Now, digital marketing is more like TV advertising. You lose a lot of the data, but you can still be very profitable if managed well. Branded TV advertising can be like flushing money down an endless pit, but DRTV (“Direct Response Television,” or “Infomercials”) has always been results-based. DRTV is very promising despite the lack of data available in comparison to current digital advertising strategies.
What Are The Changes Made By Apple?
This year, Apple will make a slight — but world-altering — change that will reduce the ability to do targeted ads through digital marketing. In the past, the privacy option that has been nearly impossible to find in the depths of users’ phones will now be very prominent when you first open the app. With that said, companies are now scrambling to continue onward with these new restrictions. With these new rules, not following the guidelines could lead to removal from the app store. Still, compliance will likely lead to lower ad revenues on most platforms, at least until marketers can adjust to the “new way” of digital marketing in 2021.
How Will This Impact Digital Advertising?
While there is a distinct rule in place, companies are struggling to determine a course of action because there is no clear guidance on what needs to change on the advertising end. Apps like Facebook rely heavily on ad targeting by gathering information on their mobile users. Now, when a person opens Facebook, there will be a pop-up that reads something like “ Facebook would like permission to track you across all apps and websites owned by other companies.” When a person receives this information, they can either allow or opt-out. If a person opts out, advertising companies do not have access to any data outside their platform. The loss of data removes the possibility for most types of ad targeting.
For example, when someone clicks on an ad on Facebook and goes to a marketer’s website on the Chrome app, a tracking pixel monitors their actions. Then, marketers can then retarget people who have visited their website and did not complete a purchase. With this new change from Apple, we may lose all ability to retarget because we won’t have the data of who visited your website, what ad they saw on Facebook, and what actions they took on the site.
All of this can feel like suddenly digital advertising gets left in the dark. At this point, digital advertising is heavily curated and personalized for each person. Now, companies are just going to have to use new methods. Along with this, many apps can be free as a result of advertisement pop-ups. With these new privacy rules, this may be more difficult.
Use DRTV Advertising Methods To Maintain Growth With These New Updates
In a CNBC article regarding these changes, they say WeatherBug’s CEO plans to invest in “areas like direct sales, ways of leveraging first-party data and contextual advertising.” Along with that, the article warily states, “Some companies may go away completely if they can’t figure out how to move forward in a way that aligns with the way privacy standards are heading.”
Since the early 1980s, the DRTV industry has been extremely profitable. How? The industry utilizes a system that markets products and services directly to consumers. The industry does this with very little data on the consumer’s habits, likes, and dislikes. With that, consumers still visit the product website or call the 1-800 number. Yes, people still order products over the phone!
There’s a disconnect between the moment the DRTV spot (“infomercial”) gets viewed on TV to when the consumer places the order. There are ways to attribute sales to specific TV airings that are different from Facebook, YouTube, and other social platforms. These strategies can help your business grow in the coming year. All that to say, new digital platform restrictions make the tactics increasingly similar to TV advertising. Luckily, if you do TV advertising the right way, it can be extremely profitable. Along with that, digital advertising will continue to work in conjunction with TV marketing for marketers that adjust their strategies.
With all of this said, the advertising industry is constantly changing. And, we are not afraid of change here at Harvest Growth! Let us use our skills and experience with direct-response marketing to propel your business forward.
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