How eCommerce Marketers Can Adapt To Rising Mobile Ads Costs

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An analysis of billions of ad bids shows how eCommerce marketers can adapt to the rising cost of CPA advertising.

According to Moloco’s in-depth analysis of changes in iOS mobile advertising over the past year, Apple’s privacy updates have increased the price of cost-per-action (CPA) ads for eCommerce marketers by as much as 200 per cent. Moloco’s findings include how eCommerce marketers can adapt. To better understand the impact that App Tracking Transparency (ATT) is having on the world of e-commerce marketing, Moloco gathered data from 30 different cost-per-action (CPA) campaigns run by mobile eCommerce apps throughout 2021. The study examined the performance of two types of CPA campaigns — those that relied on user-specific data (Non-Limited Ad Tracking or Non-LAT) and those that didn’t (Limited Ad Tracking or LAT). 

Moloco’s report explores the impact Apple’s recent privacy policy shifts have had on mobile advertising costs by analysing 33.3 billion programmatic advertising bids, 2.2 billion ad impressions, 8.2 million clicks, and 95 thousand actions. The study shows that the cost of eCommerce CPA advertising to tracked iOS users has increased by 200 per cent. The report also shows that non-tracked iOS users’ CPA advertising costs increased by 155 per cent.

Price movements are directly impacted by the significant decline in tracked iOS users, which fell from 73 per cent at the beginning of the year to 32 per cent by June. Due to the automatic nature of iOS 14.6, user tracking opt-outs spiked after its release Opt-outs slowed over the second half of June, but subsequent updates could further reduce tracking on Apple’s ecosystem. This conclusion is supported by the data, as most users decline tracking when asked.

A study found that eCommerce marketers should adapt new strategies to deal with these developments. Advertisers should focus on ROAS, diversify their traffic sources, and use new technologies to optimise their advertising spend. In particular, innovative approaches to spend management that utilise machine learning have proven more effective at navigating rate volatility than traditional methods.

Also Read: A Token of Ad-ppreciation 

Major Takeaways:

• Users Want Their Privacy: By June 2021, 67.54 per cent of iOS bid request traffic came from users who had opted out of tracking across the entire ecosystem. 

• The Cost of Precision Has Risen: Since Apple’s update, demand for non-LAT traffic has exceeded supply, resulting in a rise in CPM and CPC prices.

• Innovative Approaches to Managing Spend Are Critical: Additionally, the average CPA for e-commerce marketers targeting opt-out iOS users has increased by 155 per cent since ATT.