The State of Consumer Tracking with Rishab Jain, FERMAT

The State of Consumer Tracking with Rishab Jain, FERMAT

Rishabh Jain, CEO of Fermat, takes a deep dive into the implications of ATT changes on consumer tracking. He discussed the history and current state of customer tracking, the value of modeling and experimentation on ads, and how to best prepare for a new privacy landscape.

June 30th 2023

June 30th 2023

Rishabh Jain, FERMAT

Rishabh Jain, FERMAT

Key takeaways

Key takeaways

Key takeaways

The Shift Toward Privacy Is Disrupting Traditional Ad Measurement

Apple’s privacy updates (like ITP and ATT), along with regulations like GDPR and CCPA, have significantly reduced the effectiveness of ad targeting and measurement. Combined with Google's upcoming cookie deprecation, these changes are increasing CPAs (cost per acquisition) and limiting advertisers’ ability to track consumer behavior using attribution models.

Experimentation and Modeling Are the Future of Measurement

In response to the loss of deterministic tracking, marketers are advised to shift toward incrementality testing, media mix modeling (MMM), and creative/landing page experimentation. These methods help measure campaign performance without relying on user-level attribution, enabling more privacy-resilient strategies.

Platform Shops Are Key to Maintaining Signal Acquisition

While tools like Meta’s Advantage+ Shopping Campaigns (ASC) may not enhance the user experience directly, they are effective for ensuring signal capture at the point of transaction. This helps platforms optimize ad delivery by identifying high-performing consumer profiles, making them essential components of a privacy-conscious media mix.

iOS 17 Introduces Additional Tracking Constraints

New features like Privacy Manifests and Link Tracking Protection in iOS 17 further restrict marketers. Privacy manifests will enforce transparency about fingerprinting, and link tracking protection may strip tracking parameters (like UTM codes), particularly in Safari’s private mode. These changes may affect email and SMS campaign measurement, prompting a move toward campaign-specific checkout links and other privacy-compliant tracking alternatives.

Transcript

00:00:02 - 00:01:14

foreign [Music] so I figured that you know given the other speakers here who are speaking about a lot of other relevant topics what might be interesting is talking a little bit about consumer consumer tracking right and it's consistently a Hot Topic over the last two years because Apple made a change called ATT that I think heightened the awareness of what the impact of this could be interesting okay all right so just a little bit about my about me um I'm currently one of the co-founders

00:00:48 - 00:01:47

in the CEO at a company called fermat it's basically like a landing experience Builder that's native for every ad that you run so the whole idea is that if you're running an ad campaign how do you make sure that it's one-to-one with that campaign perfectly measurable and individualized to to that ad and the reason we started that company was because of the time that I spent at a company called live ramp which for those of you who are in the ad ecosystem it's the largest provider of digital identity

00:01:17 - 00:02:40

online so how do you reconcile one cookie ID to a mobile ID to an email address so on and so forth so in fact larger than Google and Facebook's graphs right so we we really understood tracking in the consumer world and when Apple decided to make the changes that it made alongside a few other changes we were sort of thinking about what does it mean in terms of how do we help Brands navigate those changes oh no uh it is this middle button right okay ah there we go okay so I think it's useful really quickly to

00:02:02 - 00:03:05

just talk about what the history is of tracking and um at least what Apple's stance has been over time and the reason I want to walk through this history is uh two weeks ago they made another announcement for iOS 17 that I do want to talk a little bit about and how you guys can think about preparing for that so it started in 2017 with ITP which is intelligent tracking prevention so this was a change that Apple made and this was their first step towards saying hey we don't want you tracking people from

00:02:34 - 00:03:34

one website to another and they did this in their browser which is Safari so this gave rise to what over time became like a very uh heightened cat and mouse game between especially kritia which was the largest provider of retargeting tools for the open web and apple where credio would try to create a technical workaround and then Apple would say that's not allowed and so on and so forth um and so now what happens is like Safari traffic is basically worth 30 cents on the dollar relative to Chrome

00:03:04 - 00:04:09

traffic right it in 2020 that's when Apple first made this announcement saying that they're going to prevent tracking on iOS devices what I think is very interesting about this history is the way that it played out between the middle of 2020 when it first got announced in the end of 2021 and specifically over the course of 2020 meta actually first announced that it is not going to adhere to it and that they're going to try to promote their own way of seeking compliance to tracking and then actually they found out Apple

00:03:36 - 00:04:41

wants them to use their specific prompt and they said yes we're going to do that and what was really tough I think as a marketer in 2021 is feeling unsure about what the impact is going to be to you um I don't know how many of you were experiencing this at that time but basically even once the 14.5 release happened it actually took four months before the full impact started to happen to the CPAs right and the reason for that is Apple did this thing where they actually didn't push the change so it was like a

00:04:08 - 00:05:15

optional change for consumers and then after that it takes like 90 days for those IDs to actually clear out right so again it's just something to keep in mind in terms of the vector that apple is on and it's it's basically a mission for them to to be like highly privacy compliant and anti-tracking and unfortunately it isn't just Apple um like there's regulation that is going in this direction uh gdpr the most popular in Europe the the thing I think that's worth noting is how the

00:04:43 - 00:05:48

gdpr implementation changes now that meta was fined by the agency in in Europe right so they basically I mean met us contesting this at this point in time but if that were to hold the impact of that is basically that they're saying that personalized advertising and using data for any sort of personalized advertising is not okay in Europe but using personalized data to deliver like just Pleasant customer experiences is okay so I mean I'm not here to be a politician on Europe's behalf but it is

00:05:16 - 00:06:23

a very interesting choice for how they're choosing to actually apply gdpr in Europe and then we're sort of yet to see what happens with CCPA because it's just now starting to get it uh enforced and then of course um Google is going to start deprecating the cookie right so starting next year there are going to be experiments this is now where uh all of you as marketers should start to think hey when privacy sandbox API becomes available how do I alongside Partners like like dark room or whomever else

00:05:50 - 00:06:57

you're working with to actually understand what are the ways that you can actually Implement new uh new ways of running your campaigns what are the things that I can test in privacy sandbox once they start to actually give me the capability to actually understand what happens with users who I don't have a cookie on right Okay so the sum of basically these changes is that today ads are less effective we all know CPAs are up the next one that I think is super interesting and Lucas and I were talking

00:06:24 - 00:07:29

about before the session started is measurement is moving away from attribution and this is something that you guys can action on right now start talking to your partners about experimentation and modeling so incrementality the most common version being incrementality testing or media mix modeling right and and try to find people who really understand the best ways to implement those because just attribution alone without signal is actually very very difficult to do and then the third one is again as as

00:06:57 - 00:08:08

marketers many of you know this all the platforms are pushing their own version of shops the most popular of course being meta pushing ASC uh with their shopping platform and so these are the sorts of things that that we're all experiencing right now so um what are some of the things that at least we have seen be very effective given given the current state um from an ad perspective I think this is super popular is to say hey creative testing has never been more important I totally agree with that I think often

00:07:33 - 00:08:26

underutilized is landing experience testing so once you actually click on the ad where do you land the person it is kind of annoying depending on the platform that you've chosen right like some of you are thinking man do I really have to talk to my Dev team and build a bunch of landing pages that sound super frustrating hopefully you can find partners that can help you with that and actually do very high velocity Landing experience testing just hopefully at the same rate that you can do creative testing

00:07:59 - 00:09:02

on the measurement side we talked about it briefly experimentation and modeling and I highly recommend using platform shops and the reason I recommend it is not because I actually think that it's a better experience for the consumer it's because For Better or For Worse it's the best way to guarantee that your account is getting signal on the consumers that are transacting so meta is pushing shops basically for free or for negative at this point in time because they're actually giving

00:08:30 - 00:09:32

discounts to to your consumers on their behalf the reason they're doing that is to get signal on who is transacting so that way they can learn better what kinds of consumers are actually most effective for you and so that way you can be more effective with your with your spend on meta and so I I'm not sure that you guys want to spend 100 of your budget against those campaigns but I do recommend making sure your your account has signal from from that tool um I also often get asked okay so how do

00:09:04 - 00:10:04

I think about the shops tool right relative to either something like Amazon where I have minimal control or my owned and operated d2c website right and I think thinking about these and then retail would be sort of like next to Amazon right um so I would think about these from an on a spectrum of how much control and data access you have so you know when you sell through to retail that's the least control and data access right the retailer is the one who owns the relationship with the consumer

00:09:34 - 00:10:32

with Amazon they're starting to give you a little bit more access you can now place a pixel that actually feeds data back into like a meta ad campaign for example that can help you drive more efficacy with your with your Amazon campaigns um the platform shops if the consumer opts in to giving you access for marketing then you can actually own that consumer relationship and continue to Market to them and so that's sort of medium and then owned and operated d2c and so as you're thinking

00:10:04 - 00:11:12

about where you want to allocate your marketing budget this is a useful framework at least it's been useful for companies we work with in terms of how do I think about where I want to allocate and drive my consumers okay um so a lot of that was you know history what is the current stage what are we seeing other brands doing that has been helpful to them and now I want to talk about what Apple did at the worldwide developer conference and so um yeah they have this tendency of announcing something massive and

00:10:37 - 00:11:48

glamorous and then right next to that is like a massive privacy update and of course they did the same thing this year with the AR headset and then an update uh on iOS 17. and there are two major things that they announced from a privacy perspective right so the first is privacy manifests so I'm not sure how many people here are app in the app ecosystem but basically if you're in the app ecosystem with private privacy manifest is doing is it may be the case that your partners are using some sort of fingerprinting

00:11:13 - 00:12:12

if they are using some sort of fingerprinting as a way to figure out who is actually the person who's downloading the application since the idfa is no longer accessible when you say do not track privacy manifest is now an implementation that requires you to describe what you're doing with that information and we'll block that in its entirety so um the way they describe it when you go to their website is like oh just in case you made a mistake and are fingerprinting now we have privacy

00:11:42 - 00:12:51

manifest so that way you don't do that but it's something to keep an eye on and make sure you talk with your partners as to whether or not they're doing that and then the second one which I think is probably very relevant to a bunch of people here is link tracking protection um I got into my first Twitter kerfuffle because of this so uh it I think and and this is why I wanted to share the history and the vector that apple is on before I shared what I think the impact is going to be from link

00:12:17 - 00:13:22

tracking protection so the exact words that Apple used are on the screen um so that way there's there's no ambiguity it is somewhat unclear whether or not UTM parameters are going to be impacted it is very clear that if you're in Safari private browsing mode that it is almost certainly going to be impacted there are some people who claim that it's not going to be because they have access to a Dev version of it I think that is quite wishful thinking uh what is not super clear is whether your clavio

00:12:49 - 00:13:51

attentive your basically your ESP and your SMS campaigns how trackable are those campaigns going to be over time and the very tough thing with language like this is this is exactly how they introduced ATT so they introduced ATT quite innocuously and then over the next six months between mid-2020 and the end of 2020 they issued clarification and it was during that time frame that meta agreed to abide by their new standards where they say okay fine we're not going to track anybody who does not opt in

00:13:20 - 00:14:28

and it's useful to think about this because in the context of how do you measure your campaigns one of the things that you're going to want to start to think about is how do I measure campaigns if I don't have UTM tracking on certain users even on email and SMS right and you can still use some of those same technologies that you use for for your other channels so um generally what I would recommend is do not think that having first party data is enough ultimately the client that the person is

00:13:54 - 00:15:01

using so like iMessage mail are not owned by you they're owned by a third party invest in more uh deliberate sort of measurement techniques like experimentation and modeling yeah and then work with companies to create checkouts per campaign or Channel um we're about to enter a new marketing regime there is not going to be a lot of tracking but you can still grow very efficiently and be effective and those who invest today are are going to be over alerted so thank you if you ever want to reach out to me uh I'm just

00:14:27 - 00:14:36

rishabout for my Commerce foreign [Music]


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