Apple has just released a new app tracking transparency prompt – and subtly called out Facebook in their new video announcing the update. If you work in the SaaS space and are developing or have built an app that uses customer data, or you aspire to, this update is relevant to you.
Plain and simple: for Apple users, gone are the days where companies can easily track data without their knowledge and permission.
In the new iOS 14.5 update, iPhone users will have the option to allow their data to be tracked or turned off. The impact of this change will be significant. Now nearly half (45.1%) of US smartphone users will be made aware of a data tracking opportunity every time the prompt arises on their phones or iPad. They will be able to allow or deny access to their information at the click of a button. (The 3 billion plus Android users worldwide will not be affected by this update.)
Specifically, according to Apple, “Starting with iOS 14.5, iPadOS 14.5, and tvOS 14.5, you’ll need to receive the user’s permission through the AppTrackingTransparency framework to track them or access their device’s advertising identifier. Tracking refers to the act of linking user or device data collected from your app with user or device data collected from other companies’ apps, websites, or offline properties for targeted advertising or advertising measurement purposes. Tracking also refers to sharing user or device data with data brokers.”
This drastically alters big tech’s ability to use a consumer’s information without permission. As Apple put it plainly in their video, with this prompt, the following statement will no longer be true: “Your information is for sale. You are the product.”
It’s certainly something software developers should keep in mind whenever creating a new app for the Apple App Store.
Users won’t be asked for approval every time they open an app, though. Rather, apps can only request this information once. Users can also manage an app’s ability to track information the old–fashioned way: Settings > Privacy > Tracking, then toggling off “Allow Apps to Request to Track.”
Facebook is the most well-known company frustrated by the new roll out, but many small businesses will also have to rethink the way they will advertise. Apple‘s App Tracking Transparency Prompt applies not only to app developers that sell data to third parties for targeting, but also to those who buy third-party data to mix with their own to target in ads.
As such, while companies identify new ways to target their customers, don’t be surprised by the “hit or miss” ads that start to pop up in your newsfeed.
Regardless of if this update affects you on a micro- or macro-level (or not at all, like all Android users), one thing is certain: the tech world has entered a new wave of transparency, and the coming weeks will reveal just how extensively companies relied on unsolicited data tracking to target consumers.