Is Facebook ad dead after the Apple IOS 14.5 update?

The answer to this question is Yes and No. The update definitely has some serious impact on the performance of Facebook ads, but we can be sure that Facebook will figure out a way to deal with such a challenge. The only thing that we can not be sure about is how long will it take for Facebook to figure it out. So in the meantime, we should not solely rely on Facebook ads to bring traffic to our site.

What is the Apple ios14.5 update about ?

Due to the digital data privacy policy, Apple decided to ask users whether they want their in-app behavior to be tracked. Before the update, users’ in-app behavior data can be shared between apps. For example, if you are searching for a sneaker shop on Yelp, and go to Facebook to check what is going on in the life of your friends. The chance you are going to see an online sneaker shop advertisement is high. After the 14.5 updates, the in-app behavior data can not be tracked and Facebook will have a difficult time knowing what their users like, and it is going to be hard for Facebook to target the right audience with the right ads. Therefore, Facebook ads performance will decrease dramatically.

How it is going to impact your Facebook ad performance?

After the update, there are serveral things will be impacted.

Ad structure:

Due to the SKAdNetwork API used on all iPhone devices which are updated to IOS14.5, data that can be tracked by Facebook is highly restricted. The campaign structure is restricted to 9 campaigns and 5 ad sets. Also, all the ad data will be delayed 3 days.

Mobile web advertising:

How is this going to change? For example, if somebody goes on Instagram and clicks on an ad that redirects them to a web browser to finish the purchase. The data here will be tracked due to PCM(Private Click Measurement). Rest assured, Facebook has already came up with a the Aggregated Event Measurement Tool to encounter such a problem.

Optimization and Targeting:

The Aggregated Event Measurement Tool mentioned above will only able to track eight events. Therefore, you will have to prioritize which event you would like to track.

What can you do now to adopt to the change?

1. Verify your domain simply means claiming the ownership of your site on Facebook. Due to the IOS14 data privacy policy, you will have to verify your domain in order to advertise on Facebook.
2. Due to the new update, you can only pick eight events to track your customer’s behavior. To decide which event to track, read over this guide to get a sense of it.
3. Since the 28-days attribution is removed from the Facebook attribution window, you will have to keep an account of sales that occurs from days 8 to days 28. Here is a more in-depth guide on how to add comparing windows to show view and clicks attribution.

Source: Facebook help center

How it is going to impacting your dropshipping business?

This is a fact that over 90% of drop shippers use Facebook to advertise their product. With this update, your dropshipping business might face a period of a hard time. While waiting for Facebook to solve the problem. At this point, you should seriously consider finding an alternative channel to promote your product. Solely rely on Facebook ads can be quite risky. Here are 3 alternative channels which you take into consideration.

What are the alternatives?

Youtube ads:

Types of ads supported: Non-skippable video, skippable instream, discovery, display, overlay

Target audience: Global reach, 15-55 y.o., mobile users

Advertising cost: CPV $0.010-$0.030

Affiliate-marketing friendly: Yes

Proficiency level required : Low for Display / High for Video

Ads¡¯ effectivenes: High

Tiktok ads:

Types of ads supported: in-feed video, brand takeover, TopView, branded lenses, hashtag challenges

Target audience: 16-24/25-34 y.o.; India, USA, Turkey, Russia; 2:1 female to male ratio

Advertising cost: $10/impression (in-feed), $50.000/day (brand takeover), $150.000/week (hashtag challenge).

Affiliate-marketing friendly: Yes

Proficiency level required: Medium

Ads¡¯ effectiveness: High

Printerest ads:

Types of ads supported: Standard, video, shopping, carousel, collections

Target audience: 18-29 / 35-49 y.o; 70% female; suburban US areas

Advertising cost: CPC $0.10-1.50

Affiliate-marketing friendly: Yes

Proficiency level required: High

Ads¡¯ effectiveness: High

Reddit ads:

Types of ads supported: Promoted link, promoted text, display

Target audience: 18-29 y.o.; USA; 49% to 69% female to male ratio in the USA

Advertising cost: CPM $0.75 (self-serve), $5 (sponsored links)

Affiliate-marketing friendly: Yes

Proficiency level required: Medium

Ads¡¯ effectiveness: Medium

Source: Voluum