Moloco: Programmatic Bid Analysis Reveals How Ecommerce Marketers Can Adapt To Rising Mobile Ads Costs

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Apple’s privacy updates have increased the price of cost-per-action (CPA) ads for e-commerce marketers by up to 200%. Moloco, a leader in growth and machine learning solutions for mobile marketers and e-commerce companies, said after an in-depth analysis of the changes in iOS mobile advertising over the past year. Moloco has published its findings, including how eCommerce marketers can adapt, in a recent report, ECommerce CPA Trends on iOS.

Above: CPA costs for tracked users increased 63% after the release of iOS 14.5 and a further 94% after iOS 14.6 launched, a total increase of 200% in price.

Moloco’s report, which covers 33.3 billion programmatic ad offers, 2.2 billion published ad impressions, 8.2 million clicks and 95,000 shares, explores the impact of recent privacy policy changes Apple’s have taken on the costs of mobile ads. Research shows that the cost of eCommerce CPA advertising to tracked iOS users has increased by 200%. It also shows that the cost of eCommerce CPA advertising to untracked iOS users has increased by 155%.

These price movements are directly related to the significant decrease in tracked users on iOS, which fell from 73% of Apple users at the beginning of the year to 32% at the end of June. The user tracking opt-out rate skyrocketed after the release of iOS 14.6, likely due to the fact that the the update was automatic. The pace of opt-outs slowed during the second half of June, but additional updates may put further downward pressure on the number of tracked users in the Apple ecosystem. The data supports this conclusion, as most users reject the follow-up when asked.

According to the study, ecommerce marketers should adopt new strategies to navigate these developments. The report recommends that advertisers emphasize ROAS, diversify their traffic sources, and use new technologies to optimize their ad spend. In particular, innovative approaches to expense management that leverage machine learning have proven to be far more capable of navigating rate volatility than traditional means.

Overall, research indicates that if ecommerce marketers don’t change their approach to mobile advertising soon, they are at high risk of budget being broken.

Read the full report by Moloco.

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