SMEs are being hit hard by Apple's privacy enhancements that limit app tracking
Tracking, which collects and analyzes behavior history data on web browsers and apps, makes it possible to analyze what users are interested in and hit
Small businesses count cost of Apple's privacy changes | Financial Times
https://www.ft.com/content/1959b06d-0a6e-4c37-9528-476f83626a86
Targeted advertising is a valuable means of acquiring new customers for many small businesses. With the introduction of ATT by Apple, targeting advertising has become difficult, and many small and medium-sized enterprises are forced to review their online advertising strategies and are forced to reduce marketing costs. The Financial Times reported that many small businesses were unaware that Apple's ATT regulations would affect them until early 2022, when rising prices squeezed consumer demand in major markets around the world.
``In 2021, I didn't feel the impact of ATT that much, but 2022 is just going to be tough,'' said Nadia Martinez, founder of a company that handles handmade shoes. Martinez, who has made great achievements in targeting advertising on Facebook and has also launched an online business consulting company, said that online advertising is no longer as effective as before due to soaring advertising costs and less accessible data. I'm here.
Obvi, which operates an online shop for health care products for women, said that in November 2021, the cost of acquiring new customers soared and business performance deteriorated. Before Apple introduced ATT, if you put $ 30 (about 4000 yen) per person to acquire new customers by Facebook's targeting advertisement, customers will spend $ 60 (about 8000 yen) on Obvi More than twice as much It was expected to be cost effective. The marketing budget is $ 20,000 a day (about 2.7 million yen), and 90% of it was put into Facebook's targeting advertisement, but after 2022, the marketing budget will be reduced, and most of it will be on TikTok. It seems that the policy of business strategy has been changed for repeat customers instead of new customers.
Obvi's Chief Marketing Officer Ashvin Merwani said, 'We tried to have the best possible year with a full launch, insanely profitable, and heading into Black Friday 2021. But that's when it all fell apart, and after all, Facebook lost almost half of their data, and the massive algorithms they built were all ruined by half the data. It's like losing half your brain.'
Shelly Cove, an American apparel company, has dismissed four marketing team members in July 2022 because it was found that even if more budget was put into Facebook advertising, sales would not increase. Founder Matt Schroeder said, ``In the past, if you put your budget into Facebook advertising, you've doubled it, but that's no longer possible.''
Schroeder added, ``We aim to reduce our digital advertising budget by a third and keep repeat customers in business instead of acquiring new customers. Apple ruined our business. It's irresponsible, I've been so reliant on Facebook and I'm sorry, any small business, at least an online business, is rolling in the palm of big tech like Meta or Apple, at their whim. There is no way around it.If they do something, it's over.'
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