IOS updates push up e-commerce advertising costs for tracked users

New Ideas in MarketingEssential news for marketers, summarised by YouGov
September 08, 2021, 6:02 PM GMT+0

The price of cost-per-acquisition (CPA) advertising in ecommerce has increased by 200% for tracked users.

According to a MOLOCO report, CPA costs for non-tracked users have risen by 155%.  The rise of the expenses is an after-effect of Apple’s App Tracking Transparency framework; the study suggests e-commerce marketers diversify traffic sources to minimise risk.

Similarly, marketers must optimise more campaigns for ROAS and use tools like machine learning to maximise ad spend. The report states that tracked users among Apple customers fell from 73% at the beginning of the year to 32% by the end of June. 8% of Apple users opted out of tracking between IOS 14.5 and 14.6.

Additionally, 26% of Apple users declined track requests since the release of the latest Apple update right up to the end of June. The IOS 14.6 update has also spurred CPA costs by 94% for tracked users. However, CPA costs for non-tracked users decreased by 6% after the release of the latest Apple update.

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