ATT is here, but first-party data offers a way forward for app publishers – AdExchanger

Seller“is a column written by the seller side of the digital media community.

Today’s column is written by Thanh Do, Product Marketing Manager at Permutative.

It’s no secret that Apple’s App Tracking Transparency (ATT) framework has rocked the advertising industry. Before the introduction of opt-in consent, 70% of users have enabled cross-app tracking. But since September 2021, only 21% of users worldwide have opted for ATT.

With Google configured to apply similar privacy changes Coming soon to Android Advertising ID, advertisers and publishers will have no choice but to adapt to these significant changes in mobile privacy. But there are several ways to overcome the challenges of requiring explicit tracking consent.

App publishers have a unique opportunity to offer advertisers an alternative to device identifiers.

Here’s why they need to focus long-term toward privacy-compliant first party data.

The value of publisher audiences is declining

Without Mobile Advertising Identifiers (MAIDs), Apple and Android will be limited in their ability to collect enough data to increase audience reach, track and measure campaign performance for advertisers. Plus, it will cost advertisers more to achieve the same results. For example, the loose leaf tea leaf seller Plum Deluxe used to spend $ 27 per month to acquire a customer and now spend $ 270.

With diminishing reach and measurement capabilities and the inevitable rise in prices, advertisers will have to seek alternative platforms with rich proprietary data to reallocate their media dollars. This leaves the door wide open for application editors.

First-party data is becoming the new benchmark

As stewards of data, publishers have access to a wide range of consumers who interact with their portfolio of websites and applications. This wealth of first-party data provides the kind of behavioral information advertisers seek, which makes publisher solutions interesting and compelling.

But relying solely on existing first party data will not enable a long-term sustainable business model that maximizes revenue and monetizes that opportunity. Publishers need to explore a combination as they navigate ATT and prepare for a future without an AMI.

Develop a solid first party data strategy

Take this opportunity to improve direct relationships with customers and collect different types of first party data.

Increase transparency

Mobile app publishers can control the messaging used in the opt-in notification. Be transparent about how the data collected will alleviate consumer concerns and encourage user buy-in.

Demonstrate value

Focus on improving the experience in the app. Show users the value of signing up in exchange for a personalized experience.

Explore new technologies

Start adopting and testing new infrastructures that respect privacy and don’t rely on mobile credentials.

What happens next?

Application editors can achieve great results by effectively leveraging first party data. This means using real-time targeting on first page views at scale on Apple and Android devices, without relying on IDFA or MAIDs.

Publishers of mobile applications must adapt quickly. By investing in contextual and privacy-compliant first-party data to combat ATT, they will provide a viable alternative for advertisers.

Follow Permutive (@Permutation) and AdExchanger (@adexchanger) on Twitter.

Lance B. Holton