Identifier for Advertisers Explained in Simple Terms

An Identifier for Advertisers, or IDFA, is a unique code assigned to an Apple device user's account. It's used to track user behavior and deliver targeted ads.

The IDFA is not the same as a device's unique identifier, such as its IMEI or UDID, which can be used to identify a specific device.

Advertisers use the IDFA to create a profile of a user's interests and behavior, which helps them deliver more relevant ads.

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SKAdNetwork is Apple's alternative attribution framework, designed to measure ad campaign performance in a privacy-centric way, without revealing user-level or device-specific data.

It was first introduced by Apple in 2018 and has since become a crucial tool for advertisers, particularly in an IDFA-less ecosystem. SKAdNetwork offers deterministic, yet anonymous, attribution that provides campaign performance insights without relying on user data.

Two types of engagements are registered by SKAdNetwork: views, whether an ad was viewed, and StoreKit renders, whether or not a StoreKit rendering was generated.

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The SKAdNetwork framework has undergone significant changes, particularly with the introduction of iOS 15 and SKAN 4.0. These changes aim to improve the accuracy and efficiency of attribution, but also present new challenges for advertisers.

To make the most of SKAdNetwork, advertisers need to collect all available data, including postbacks, and ensure they are not manipulated in transit. This can be achieved by working with a trusted Mobile Measurement Partner (MMP).

Here are the key steps to optimize SKAdNetwork:

Despite its benefits, SKAdNetwork has its limitations, including delayed postbacks and a lack of granularity. This is particularly challenging for advertisers who rely on precise data to inform their marketing strategies.

The IDFA is a crucial identifier for advertisers, allowing them to track iOS users with accuracy. By assigning a device to a single IDFA, advertisers have a clear understanding of user characteristics and can attribute them to specific advertising campaigns.

IDFA offers a level of data protection through depersonalization of user data, but it still enables advertisers to leverage device-specific data for targeted advertising. Users can reset their IDFA by toggling 'Allow Apps to Request to Track' off and on in their iOS device's security and privacy settings.

The IDFA is essential for advertisers to engage with their audiences, create personalized experiences, and measure campaign effectiveness. Advertisers use IDFAs to detect ad fraud, but now rely on statistical thresholds due to limited access.

The introduction of iOS 14's ATT framework significantly limited advertisers' ability to use IDFA, requiring users to opt-in for their IDFA to be accessible. This shift from opt-out to opt-in has resulted in an average global opt-in rate of 46%.

The IDFA is important because it allows advertisers to identify the same device and user across different apps with 100% accuracy. This helps advertisers understand their users and target specific audiences with content they find useful.

Here are some key ways the IDFA scarcity impacts advertisers and publishers:

In a post-IDFA world, advertisers are exploring alternatives to adapt to the new landscape. Advertisers are using cohort analysis, data clean rooms, machine learning, and incrementality testing to optimize their campaigns.

Cohort analysis is a key strategy for advertisers to understand user behavior and measure the effectiveness of their campaigns. This approach involves analyzing groups of users who have taken a specific action, such as making a purchase or completing a level.

Data clean rooms are another solution that allows advertisers to share and match data across different platforms, while maintaining user privacy. This approach enables advertisers to gain a more accurate understanding of their target audience.

Machine learning and predictive analytics are also emerging as key solutions in the post-IDFA world. These technologies enable advertisers to make data-driven decisions and optimize their campaigns in real-time.

Incrementality testing is a method used to measure the effectiveness of advertising campaigns. This approach involves comparing the performance of a campaign to a control group to determine its impact.

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SKAdNetwork is a key solution for advertisers to optimize their campaigns in the post-IDFA world. Working with mobile measurement partners (MMPs) is essential to make the most of SKAN measurement.

Here are the key steps to make the most of SKAdNetwork:

Advertisers can also use owned media channels, such as personal websites, social platforms, push notifications, and email, which are not impacted to the same degree as campaigns on paid channels with third parties. Deterministic targeting and measurement are possible using the Identifier for Vendors (IDFV) even if a user opts out.

In iOS 15, SKAN postbacks were sent only to ad networks, and then forwarded to the advertiser or MMP on the advertiser’s behalf.

With the release of SKAdNetwork 4.0, Apple introduced significant changes to allow advertisers and ad networks to measure more while maintaining user privacy.

Advertisers will receive up to 3 postbacks instead of just 1 in the previous version, each based on a specific activity window: 0-2 days, 3-7 days and 8-35 days.

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SKAN 4.0 introduces a new term called "crowd anonymity", which describes the privacy-preserving way in which SKAN delivers attribution data. The more installs you get, the more data you have.

Advertisers will now receive "coarse-grained" conversion values, which are split into 3 types: low, medium, or high — each assigned by advertisers to indicate different levels of user engagement.

Here's a breakdown of the new conversion values:

SKAdNetwork 4.0 is a game-changer for advertisers, introducing significant changes that allow for more measurement while maintaining user privacy.

One of the key updates is the introduction of three postbacks instead of one, allowing advertisers to receive up to 3 postbacks based on a specific activity window: 0-2 days, 3-7 days, and 8-35 days.

This will enable advertisers to understand how users engage with their app over time, while still maintaining user anonymity.

Crowd anonymity is another term used by Apple to describe the privacy-preserving way in which SKAN delivers attribution data, where the more installs you get, the more data you have.

Hierarchical conversion values are also a new feature in SKAN 4.0, which allows advertisers to receive some attribution data even when the privacy threshold hasn't been met.

Here are the four fundamental updates in SKAN 4.0:

The aftershocks of Apple's ATT and the decline of the IDFA continue to generate major challenges for advertisers and ad networks alike.

iOS 15 updates brought significant changes to SKAN postbacks, which were previously only sent to ad networks and then forwarded to advertisers or MMPs. Advertisers now have more flexibility in understanding user engagement with their app over time.

SKAdNetwork 4.0 introduced three postbacks instead of one, each based on a specific activity window: 0-2 days, 3-7 days, and 8-35 days. This allows advertisers to count unique event occurrences, even though the postbacks are not connected to an individual user.

Crowd anonymity is a new term introduced by Apple, describing a privacy-preserving way to deliver attribution data. The more installs an advertiser gets, the more data they have.

Hierarchical conversion values are a new feature in SKAN 4.0, which splits conversion values into three types: low, medium, or high. Advertisers assign these values to indicate different levels of user engagement.

Apple also introduced a hierarchical source identifier in SKAN 4.0, renaming their campaign identifier field to source identifier and increasing its range from 2 to 4 digits.

Here's a quick rundown of the changes in SKAN 4.0:

Publishers can use the Identifier for Advertisers (IFA) to provide a unique identifier for each device, making it easier to manage ad inventory and target specific audiences.

IFA is a 96-bit number that is generated by the operating system and is tied to the device's advertising ID.

Advertisers can use the IFA to target specific audiences and deliver more relevant ads.

The IFA is stored on the device and is used to match ads to the user's interests and preferences.

Publishers can also use the IFA to prevent ad fraud and ensure that ads are being displayed to real users.

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The future of mobile measurement is shifting away from IDFA, with cohort analysis, data clean rooms, and machine learning emerging as key solutions. Advertisers are warming up to SKAN measurement and learning how to make it work for them.

Data deprecation is impacting brands, publishers, and adtech, but alternative solutions are on the horizon. The New York Times, Forrester, Publicis Media, and Epsilon are weighing in on the future of identity without third-party cookies and IDFA.

Advertisers are exploring new measurement solutions, including cohort analysis, data clean rooms, machine learning, and incrementality testing, to adapt to the post-IDFA landscape.

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The Future of the Post-IDFA World is looking bright. As the ecosystem evolves, IDFA is destined to become less and less relevant in the realms of mobile measurement.

Advertisers are turning to alternative solutions like cohort analysis, data clean rooms, machine learning, predictive analytics, and top-down measurement. This includes incrementality and media mix modeling (MMM), which are key to understanding campaign effectiveness.

SKAN measurement is emerging as a top solution for advertisers. To make the most of it, advertisers should learn how to make it work for them.

The future of cookies is uncertain, with many experts weighing in on the impact of data deprecation.

The New York Times, Forrester, Publicis Media, and Epsilon have all contributed to the conversation, highlighting the need for new identity solutions.

As cookies and IDFA are phased out, brands and publishers are left wondering what's next.

The experts agree that finding a new way to identify users is crucial for the future of advertising and marketing.

Publicis Media and Epsilon have emphasized the importance of developing new identity solutions that prioritize user consent and transparency.

Data deprecation is already having a significant impact on the adtech industry, with many companies struggling to adapt.

Forrester has noted that the shift away from cookies and IDFA will require significant investments in new technologies and strategies.

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The Identifier for Advertisers (IDFA) is a random device identifier assigned by Apple to a user's iOS device.

Advertisers use the IDFA to track data and deliver customized advertising. This allows them to attribute users to specific sources and gain a clear picture of how the types of users that different sources provide.

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The IDFA is used for tracking and identifying a user without revealing personal information, and linking user actions and events to campaigns and channels.

It was first released by Apple in 2012 with iOS 6, serving as a globally unique identifier assigned to an iOS device.

With iOS 6.1, Apple allowed iOS users to reset their IDFA, giving users more control over their device's tracking settings.

The IDFA can identify when users interact with a mobile advertising campaign, provided the channel offers IDFA tracking and the advertiser tracks users who interact with ads successfully.

In iOS 12, Apple introduced the concept of Limit Ad Tracking, allowing users to block access to their IDFA for tracking and advertising activities.

With the release of iOS 14 in September 2020, IDFA access became subject to user opt-in/consent to ad targeting and tracking through the AppTrackingTransparency (ATT) framework.

Advertisers and publishers are facing significant challenges with the limited access to IDFA. Advertisers have lost their visibility into events such as clicks, downloads, registrations, and purchases for non-consenting users, making it harder to track conversion.

Advertisers can still deliver messaging on iOS apps, but they won't be able to identify individual users unless they've actively opted in. This limits their ability to target specific audiences and personalize their messaging.

The loss of IDFA will impact advertisers' ability to measure campaign effectiveness, making it more difficult to track conversion and understand the effectiveness of their ads. This can lead to wasted budget and a decrease in campaign performance.

Advertisers will face challenges in targeting, pacing, measurement, personalization, and dynamic creative. Here are some specific ways in which IDFA scarcity will impact advertisers:

Many marketers don't believe consumers will benefit from these changes, with 62% thinking they won't be better off. This could lead to a decrease in digital advertising overall, with 70% of marketers feeling that it will take a step backward.

The post-ATT impact on Facebook and Google has been significant. Meta, the company behind Facebook, lost a substantial share of its iOS install market share after the introduction of ATT.

Meta's dominance in iOS was evident before ATT, but now the company is nowhere near where it used to be. In fact, Google has also lost considerable ground in the iOS market share.

According to earnings reports and press articles, Meta has been the most impacted by ATT, which has leveled the playing field in some ways. The company's main assets are apps, whereas Google's main asset is search, a mobile web environment where the ATT prompt is irrelevant.

Meta's loss of access to granular user-level data has diminished its competitive edge in ad optimization and targeting. This has resulted in a significant decline in Meta's iOS market share.

Here are some key statistics illustrating the impact of ATT on Meta and Google:

Meta and Google have seen a significant decline in their iOS market share after the introduction of ATT. This has resulted in a loss of competitive edge for Meta, which has had to adapt to the new landscape.

In fact, 62% of marketers don't believe consumers will be better off as a result of these changes, and 70% feel that digital advertising overall will take a step backward.

The introduction of the ATT framework in iOS 14 had a significant impact on users.

With the ATT framework, users now have more control over their personal data.

The opt-in rate for IDFA was surprisingly low, averaging 46% globally, despite the new framework requiring explicit permission.

This shift from opt-out to opt-in has limited advertisers' ability to use IDFA for campaign measurement.

Kochava offers highly accurate attribution to help advertisers understand the efficacy of their ad spend with full support for SKAdNetwork.

Kochava's Privacy Profiles allows marketers to decide what user and device data is collected and used for attribution, based on the user's consent status via the ATT framework. This ensures compliance with Apple's policy.

Kochava provides measurement and attribution options when an IDFA cannot be gathered, ensuring advertisers gain the most accurate data possible.

Epsilon continues to build on the capabilities of its people-based CORE ID, which was first introduced in 2007. This identity is anchored in deterministic name and address data tied to individual-level purchases.

The CORE ID achieves 96% cross-device accuracy and industry-leading match and reach rates. Shoppers provide merchants with this high-integrity data to ensure service and delivery of their purchases.

Each CORE ID record is associated with an average of five points of contact. This allows Epsilon to serve personalized ads across multiple touchpoints to well over 95% of the 200+ million people in its CORE ID graph.

Fewer than 5% of CORE IDs rely on IDFAs as their only addressable touchpoint. Epsilon will continue to deliver personalized messaging to the vast majority of iOS users across multiple touchpoints after Apple's changes take effect.

Epsilon is working closely with its clients and partners to learn, innovate, and adapt to provide the best experiences for consumers and outcomes for its clients. Keeping privacy at the forefront, Epsilon will continue to reduce dependence on tracking cookies and mobile device IDs.

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Kochava offers highly accurate attribution to help advertisers understand the efficacy of their ad spend. It provides full support for SKAdNetwork and measurement options when an IDFA cannot be gathered.

Kochava's Privacy Profiles allow marketers to decide what user and device data is collected and used for attribution based on the user's consent status via the ATT framework. This gives marketers peace of mind that their attribution is in compliance with Apple's policy.

SmartLinks can be used on personal social posts to gauge conversions driven. This is useful for influencer marketing or content creator campaigns, where one SmartLink can capture the dynamic ID of the content being consumed and direct users to the app store to download the app.

If a user opts out, Kochava can still provide cohort-based incremental lift measurement that's privacy-first and accurate with MediaLift. This is a useful alternative to SKAdNetwork attribution for OTT/CTV campaigns.

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