Are you unsure of how Apple’s iOS 14 Privacy Update will negatively Impact Your Facebook conversion data?
You are not alone.
With over 60% of devices in the US alone running on iOS [not to mention that iOS users tend to be higher value prospects] your concern is legitimate.
Yes, the war between Facebook and Apple is real.
Apple is asserting their control in the name of protecting user privacy. Giving them a choice to be tracked or not.
Facebook is accusing Apple of harming the growth of businesses and the free internet in the name of revenue.
It’s easy to see that Facebook will have an uphill climb on this PR battle.
As this plays out publicly I don’t think Apple is going to reverse their decision. Therefore Facebook Marketers will have to adjust and accommodate for the impact.
So, rather than focus on the uncertainty, we are going to provide 13 concrete steps to prepare you for the iOS 14 Privacy Update slated for early 2021.
The iOS 14 Privacy Update is a big deal for Facebook marketers
With the upcoming change to iOS14 Facebook will have to request permission from each iOS user via a prompt in accordance with Apple’s App Tracking Transparency Framework.
This means that if iOS 14 users do not opt in (and there is a good chance they won’t) ads personalization and performance reporting will be limited across both app and web conversion events.
Facebook built their entire ads model [not to mention trained their algorithm] on the fact that they can track people not cookies across web and apps.
And Facebook Marketers have built their strategies around this capability.
Needless to say, the era of Facebook Experts touting a 20X ROAS in the Facebook Ads Manager is over; which is not necessarily a bad thing.
This is a big change for Facebook Marketers. However, this is not the first (or last) time digital marketers will face challenges as the push for user privacy continuous. Hello Apple’s ITP (Intelligent Tracking Prevention).
In this post we will provide 13 concrete steps you can take NOW to prepare yourself and your clients for this update.
1. Verify your Domain in the Facebook Business Manager
The first and easiest step is to verify your domain in the Facebook Business Manager.
Verifying your business domain is not a new feature. Facebook considers this best practice.
However, Facebook is saying it is important to prioritize this step especially if your domains have multiple businesses or personal ad accounts that own pixels.
Either way given that Facebook is highlighting this step in preparation of the upcoming iOS 14 Privacy Update I would highly recommend you do this.
You can verify your domain in the Facebook Business Manager under Brand Safety > Domains
There are two verification methods:
1. HTML file upload
2. DNS TXT record
For complete instructions on how to do this, you can reference the Facebook developer documentation on verifying your domain.
2. Define 8 key conversion events to track
Once the iOS 14 Privacy Update rolls out you will only be able to associate 8 conversion events for each Facebook Pixel.
This means you will only be allowed to optimize for a maximum of 8 conversions events.
Once this change kicks in on the Facebook side of things you will have the option to select your 8 designated conversion events.
However, if you do not refine conversion events yourself, prior to this update, Facebook will define them for you based on which ones Facebook thinks is most relevant to your business.
You can configure your preferences in the Events Manager.
Also keep in mind that once this change happens any campaigns or ad sets that optimize for an inactive conversion event will stop running.
The best move is to be proactive. Identify the most important conversion events in your funnel then reduce them down to 8 key conversion events prior to the update.
If you are working with more complex e-commerce funnels or product onboarding funnels the best measurement strategy could be tracking key events in Facebook for optimization and building out your full funnel in GA4. (Assuming you are not running with Amplitude, Mixpanel or Heap).
More on GA4 below.
3. Switch to a 7 day reporting window – Now
You can use the comparing attribution window in the Facebook Ads Manager to analyze campaign conversion disparities between a 1, 7 and 28 day click and view attribution window. However this feature will go away.
Once the iOS 14 Privacy Update rolls out and Facebook adapts, the Facebook Ads Manager will only report on a 7-day post click and 1 -day post view attribution model.
Making the 7-day window attribution window your default today gets you ready for the upcoming changes. You will also better understand how to analyze and optimize your campaigns in the future. In addition you are preparing your clients in advance on how performance will look in 2021.
To change your default attribution reporting window for the Facebook Ads Manager go to Ad Account Settings > Attribution
4. Enable server side tracking
Let’s put the iOS 14 Privacy Update aside for a minute.
Browser third-party cookies are being phased out and first party cookies are seeing limitations. ITP is already in place for Safari and Browsers running on OS and Google Chrome is slated to block all third party cookies in about a year from now.
Given these updates, tracking, storing and passing data server side will become more critical for accurate conversion tracking.
Essentially when installing event tracking server side you are sending events from your server to the Facebook pixel instead of the browser being responsible for sending the event. This means you can process data as first-party data to prevent conversion loss due to browser cookie limitations.
In addition, server side events are also a great solution for lead generation campaigns.
When you generate a lead it can take time for the lead to be qualified or have a value assigned.
With Facebook’s conversion API you can decide to not fire the event until a certain action or value has been assigned via your CRM.
There are a number of ways to enable server side tracking for Facebook called Conversion API or CAPI.
Here are some resources:
5. Update Automated Rules
Once Apple’s IOS 14 Privacy Update takes place all automated rules will default to a 7-day attribution model.
Until this change kicks in you are still able to adjust the post-click attribution window for automated rules.
However, you should start updating your automated rules so that necessary adjustments can be made in preparation for when the iOS 14 Privacy Update rolls out.
Reporting on your ads using historical data and leveraging the comparing attribution window is probably the best way to get started with adjusting your automated rules.
6. Make sure you add UTMs to all Facebook Ads
The upcoming IOS 14 Privacy Update coupled with Apple’s ITP (Intelligent Tracking Prevention) means Facebook Marketers will be able to collect less data and be restricted to a shorter data storing window.
This will push marketers back to relying on the last click model for first time acquisition making it more important than ever to accurately and consistently assign UTMs to your Facebook ads.
In addition, importing Facebook cost, impression and click data into Google Analytics can provide complete performance reporting outside of the Facebook Ads Manager.
Relying on a last click model is not final solution. It just means we, as marketers, need to get creative capturing and owning customer data early in the marketing funnel in a way that is not annoying intrusive or breaching privacy.
7. Define Target Google Analytics Metrics Using Historical Conversion Data Disparities
Google Analytics tracks on a last click model. Given that it’s cookie dependent, there is limited cross device or cross browser tracking.
Facebook can (was able to) target people, not cookies across browsers and devices. As a result they are (were) able to attribute conversions over a 28 day window.
With the iOS 14 Privacy Update this will all change.
Once the update rolls out the following windows will be supported:
7-day click (default)
1-day click and 1-day view
7-day click and 1-day view
However, for now, you still have access to all of your historical campaign data across Facebook attribution windows.
Comparing Facebook campaign performance to Google Analytics will help you identify the average delta between the two tracking methodologies.
Doing this can given you a directional data point of reference to approximate expected under reporting in Google Analytics.
To prepare for the upcoming changes, export your historical ads manager data while you still have the 1, 7 and 28 day attribution windows available in the Facebook Ads Manager.
Once the update rolls out non-supported attribution windows for historical campaigns will no longer be available in the Facebook Ads Manager.
However, it will remain accessible via Facebook’s Ads Insights API.
If you are reading this post after the iOS 14 Privacy update you can use Supermetrics to report on historical data using legacy attribution windows.
8. Check Your Google Analytics Device Reports
As a preemptive measure, take a look at your Device Report to understand the % of traffic that will be affected by the iOS 14 Privacy Update.
You can find the report on Audience > Mobile > Device
Filter down to Apple devices and the % of Total Users or Sessions will tell you what percent of your current traffic will be impacted by this change.
9. Map Facebook and Shopify Customer Data to better understand the LTV:CAC ratio of Facebook Campaigns
Ok, to be honest, I have always had mixed feelings about Facebook’s 28-day post-click attribution window.
Mainly because it does not account for cross-channel interactions.
As a result Facebook’s 28-day post click window over attributes conversion performance to Facebook Ads. In my experience it’s never a good idea to analyze performance in a vacuum.
To be clear, I am not saying that Facebook’s Ads Manager Reporting was wrong. However, overconfidence in feel good conversion metrics (especially for shorter sales cycles) can lead one to under-optimizing other critical channels.
Having said that, the good thing about the 28 day attribution window was that it did provide some insights of ad performance over time (well 28 days to be exact); which can include counting repeat purchases.
So where does the LTV:CAC metric come into play?
The LTV:CAC metric is a good indication as to whether you are making your money back on customer acquisition costs. A ratio of 3 or higher is typically considered a healthy LTV:CAC.
The upcoming iOS 14 Privacy Update will significantly reduce conversion tracking in the Facebook Ads manager.
In turn this will drive an increased cost per acquisition (due to limited tracking) perceived or real.
Either way it will be more important than ever to understand the LTV performance of top of funnel acquisition campaigns.
You can use tools such as Glew for ecommerce to understand this metric better.
Alternatively, you can build a LTC:CAC report using free and low cost tools (Supermetrics, Google Sheets and Data Studio) to report on LTV performance for top of funnel customer acquisition campaigns over time.
Here is a tutorial on how to build the ultimate Facebook and Shopify pivot table in Google Data Studio.
10. This brings us to GA4
Google Analytics (Universal Analytics) is somewhat dated. However, they have a new version called GA4 (still in beta) built for the future of a more private web.
The key feature to GA4 is that you can set default reporting to identify users across User-ID and device. (Not to be confused with the traditional User ID view. This method uses Google’s logged in user data.)
With the User-ID and device setting selected, GA4 will use machine learning to close the gap for cross browser and cross device attribution.
This makes the cross device and cross platform tracking capabilities in GA4 far superior to that of Universal Analytics.
You think Facebook is the only platform with a wealth of logged in user data? Think again. Gmail has over 1.8 billion users worldwide.
Like I said GA4 is still in beta but they are rapidly rolling out new features.
I would strongly recommend setting up a GA4 account in addition to your standard Google Analytics. This will allow you to collect unlimited conversion events and leverage custom funnel reporting.
Starting data collection as soon as possible will enable you to leverage another analytics tool to close the Gap where Google Analytics and now Facebook cannot.
11. Post purchase survey
Leveraging post purchase surveys can give you a good idea of how users discovered your brand or product.
When using post purchase surveys make sure to use free form fields to remove selection bias.
More often than not, the product and brand discovery phase is fragmented across channels and devices. By serving consistent post purchase surveys you can get a good sense of what channels are big drivers of customers.
It is not uncommon for Facebook to be one of the biggest ‘heard from/found us’ channels. However, only 25% – 35% of converting traffic will be directly attributed to utm_source=facebook.
If you want to learn more about post purchase surveys for Shopify check out this video from Smart Marketer.
12. Leverage Email and Messenger
As we stated earlier, having a direct conversation with your customers early on will become more important than ever.
Doing this in a non-intrusive way without annoying prospects is going to take some creativity.
However, the sooner you can capture and own customer data (such as email or phone number) the better. Once you own customer data you can continue to have a conversation with them as well as tie their acquisition back to the initial touch point whether that be from paid or non-paid channels.
13. Let your clients know how this change impacts performance
I can’t stress this enough. Be transparent with your client and explain what is happening. (Feel free to share this article)
Being transparent about these changes preemptively and letting your clients know what is being done NOW creates solution oriented, transparent and trust based communication.
Trust me, you don’t want this new iteration to be an after thought/excuse during a client freak out session.
Here is a great email template created by Andrew Foxwell you can use to send to clients.
Final Take Away on the iOS 14 Privacy Update
The impact of the iOS 14 Privacy Update is going to be felt by all Facebook Marketers. However, this is not the first time digital marketers are experiencing a shake up.
Marketing and privacy can coexist however getting there will take uncomfortable changes that can make it harder and force more creativity from us marketers.
With the right preparation you can lessen the blow of this update and be prepared to take the necessary action to ensure your Facebook campaigns are still effective.
What are you doing to get ready for the iOS 14 Privacy Update? Let me know in the comments.