How Will iOS 14 Affect Facebook Lookalike Audiences?

TL;DR

iOS 14 will slightly affect Facebook lookalike audience effectiveness.

Transcript

hi guys it's ben heath from lead guru and in this video i'm going to talk about how facebook look-alike audiences are likely to be affected by the ios 14 update and the changes that facebook is currently making in response to what apple have done and the new rules that apple have implemented um i've recently created quite a bit of content around io... Read More

Key Insights

• The iOS 14 update will slightly reduce the effectiveness of Facebook's lookalike audiences, but not as significantly as initially feared.
• Lookalike audiences rely on custom audiences, which may shrink due to reduced data tracking from iOS 14, particularly affecting website-based custom audiences.
• Facebook can still track user behavior on its platform, so lookalike audiences based on Facebook activity remain largely unaffected.
• Advertisers using website visitor data for lookalike audiences might see a 10% reduction in audience size due to iOS 14's privacy features.
• The reduction in data collection will slightly impact Facebook's ability to create precise lookalike audiences, potentially increasing costs by 5-10%.
• Increasing the size of source audiences can help mitigate the reduced effectiveness of lookalike audiences post-iOS 14 update.
• Facebook's internal adjustments to iOS 14 changes might cause temporary fluctuations in ad performance, but long-term impacts are expected to be minimal.
• Advertisers should not panic, as lookalike audiences will continue to be a valuable tool, especially when based on robust data sources like customer lists.

Questions & Answers

Q: How will iOS 14 impact Facebook lookalike audiences?

The iOS 14 update will slightly reduce the effectiveness of Facebook lookalike audiences by limiting data collection from iOS devices. This will mainly impact audiences based on website visitors, potentially reducing their size by about 10%. However, audiences based on Facebook activity will remain largely unaffected.

Q: What custom audiences will be most affected by iOS 14?

Custom audiences based on website visitors will be most affected by iOS 14, as the update limits Facebook's ability to track user behavior on websites. This may result in a reduction of audience size by around 10%. Other custom audiences, such as those based on Facebook activity, will remain largely unaffected.

Q: Can advertisers still rely on lookalike audiences post-iOS 14?

Yes, advertisers can still rely on lookalike audiences post-iOS 14. While there may be a slight reduction in effectiveness due to decreased data collection, lookalike audiences remain a valuable tool. Advertisers can mitigate these effects by increasing the size of their source audiences and using robust data sources like customer lists.

Q: How can advertisers adapt their strategies to iOS 14 changes?

Advertisers can adapt to iOS 14 changes by increasing the size of their source audiences and focusing on robust data sources like customer lists. This will help maintain the effectiveness of lookalike audiences. Additionally, they should monitor performance fluctuations as Facebook adjusts its systems and be prepared for temporary changes in ad performance.

Q: Will Facebook's ability to create lookalike audiences be significantly impacted?

Facebook's ability to create lookalike audiences will be slightly impacted by iOS 14, but not significantly. The update will reduce the amount of data Facebook can collect, particularly from iOS devices, which may result in a 5-10% decrease in audience precision. However, Facebook's vast data resources will still allow for effective audience creation.

Q: What types of data sources should advertisers focus on for lookalike audiences?

Advertisers should focus on robust data sources such as customer lists and Facebook activity when creating lookalike audiences. These sources are less affected by iOS 14's privacy changes and will help maintain the effectiveness of lookalike audiences. Website-based data sources may experience a reduction in audience size.

Q: How might iOS 14 affect advertising costs for lookalike audiences?

iOS 14 might slightly increase advertising costs for lookalike audiences by 5-10% due to reduced data collection and audience precision. Advertisers may see a slight increase in cost per conversion. However, these changes are not expected to be drastic, and effective strategies can help mitigate cost impacts.

Q: What should advertisers expect during Facebook's adjustment to iOS 14?

During Facebook's adjustment to iOS 14, advertisers might experience temporary fluctuations in ad performance as the platform recalibrates its systems. This could result in short-term performance dips for lookalike audiences. However, these changes are expected to stabilize, and long-term impacts should be minimal, ensuring continued effectiveness of lookalike audiences.

Summary & Key Takeaways

• The iOS 14 update introduces privacy changes that will slightly affect the effectiveness of Facebook lookalike audiences, mainly by reducing the size of website-based custom audiences. However, Facebook activity-based audiences will remain unaffected, ensuring that lookalike audiences continue to be a valuable advertising tool.

• Facebook's ability to create precise lookalike audiences might decrease slightly due to iOS 14's data tracking limitations, potentially increasing advertising costs by 5-10%. Advertisers can counter this by increasing the size of their source audiences, ensuring continued performance.

• Despite potential short-term fluctuations in ad performance as Facebook adjusts to iOS 14, lookalike audiences are expected to remain effective. Advertisers should focus on using strong data sources like customer lists to create robust lookalike audiences and adapt strategies accordingly.