Mastering Growth Strategy Post-iOS 14: What Ecommerce Brands Need to Know

The release of iOS 14 brought major changes to the world of digital marketing, leaving many ecommerce brands scrambling to adapt their advertising strategies. Apple’s App Tracking Transparency (ATT) framework has redefined how marketers collect and use customer data, leading to challenges in targeting, tracking, and attribution. However, these shifts also present new opportunities for ecommerce brands to refine their strategies and find creative ways to achieve sustainable growth.

In this blog, based on insights from Episode 62 of The Operators Podcast with Sean Frank, Jason Panzer, Matt Bertulli, and Mike Beckham, we’ll explore the key challenges and strategies for navigating paid social marketing post-iOS 14.

The Impact of iOS 14 on Ecommerce Growth Strategy

With the introduction of iOS 14, Apple implemented stricter data privacy measures, requiring apps to seek permission from users before tracking their activity across other apps and websites. This change significantly impacted the effectiveness of ad targeting and attribution for ecommerce brands, especially on social media advertising platforms like Facebook and Instagram. Many brands faced difficulties accurately measuring their customer acquisition cost (CAC) and understanding which ad campaigns truly generated new customers.

The diminished data flow has posed significant challenges, but brands that adapt their ecommerce growth strategy to this new reality can still thrive. Let's dive into the key areas where brands need to pivot to maintain paid social marketing effectiveness post-iOS 14.

Challenges of Paid Social Marketing Post-iOS 14

1. Ad Targeting and Attribution Issues

One of the biggest hurdles post-iOS 14 is the reduction in tracking capabilities. With the app tracking transparency (ATT) framework in place, advertisers can no longer gather as much granular data about user behavior. This has led to difficulties in segmenting audiences accurately and resulted in higher customer acquisition costs.

Brands must now find alternative methods to segment customers and target ads effectively without relying on the level of user tracking they once had. In this new landscape, leveraging first-party data becomes crucial to compensating for the gaps created by iOS 14.

2. Rising Customer Acquisition Costs (CAC)

The changes to tracking capabilities have increased the costs of acquiring new customers. Without precise data on user behavior, marketers often end up targeting the same returning customers rather than new customers, inflating their CAC. As discussed in a recent podcast featuring Sarah Carusona, brands often find themselves paying social media platforms like Meta (Facebook) to target customers who would have returned regardless of the ads.

To tackle this, brands should prioritize effective exclusion practices and data-driven marketing to better differentiate between new and returning customers.

Strategic Shifts to Navigate Post-iOS 14 Advertising

1. Prioritizing First-Party Data Collection and Customer Retention

In a world with increasing data privacy regulations, first-party data is gold. Brands need to build robust systems for collecting and managing their own data directly from customers. This can include strategies such as loyalty programs, subscription models, and incentives for direct purchases. By strengthening customer retention and loyalty efforts, brands can continue to engage with their audience without depending solely on third-party platforms for ad targeting.

To enhance customer retention, consider implementing automated email flows and personalized marketing campaigns based on customers’ purchase histories and preferences. This approach not only improves engagement but also fosters long-term loyalty.

2. Media Mix Diversification for Improved Reach

Another essential strategy is diversifying the media mix. Relying solely on social media advertising platforms for growth is risky in the current environment. Brands should explore other channels, including Google Shopping, TikTok, email marketing, and even traditional channels like TV and direct mail. Diversification helps reduce dependency on a single platform and provides multiple touchpoints to reach potential customers.

Additionally, evaluate the quality of engagement on each platform. For example, while TikTok may offer high click-through rates, if user attention spans are short, it might be more beneficial to invest in channels that offer longer user engagement.

3. Building Internal Expertise for Key Functions

Bringing key functions in-house allows brands to have more control over their strategies and pivot quickly. Many ecommerce companies have realized the importance of internal growth marketing and creative teams. By keeping media buying or growth strategy internal, brands can manage their customer segmentation and advertising more effectively without relying solely on external agencies.

However, this doesn’t mean eliminating agency partnerships altogether. Instead, focus on external collaborations for specialized tasks like advanced creative production or large-scale paid media buying while maintaining strategic decisions in-house.

Leveraging Advanced Tools and Choosing the Right Agency

1. Investing in Data-Driven Marketing Tools

The shift in data privacy means that brands need to invest in tools that allow them to collect, analyze, and utilize their own data. Platforms like Northbeam are helping brands better attribute sales and forecast ad performance with data from various channels. By integrating these tools with customer data platforms (CDPs), brands can create more refined targeting and exclusion strategies, optimizing their marketing spend.

2. Rethinking Agency Partnerships Post-iOS 14

Post-iOS 14, the role of agency partnerships has also evolved. Brands are now rethinking their partnerships to ensure that agencies provide value beyond basic ad management. It’s essential to seek agencies that specialize in areas where the internal team lacks expertise or experience. For instance, a project-based agency retainer focused on growth hacking might be the right choice for brands looking to innovate in a short period while keeping strategic decisions in-house.

To choose the right agency, brands should look for partners who can complement their internal capabilities and align with their long-term digital growth strategy. Transparent communication and clearly defined roles are vital for successful collaborations.

Best Practices for a Post-iOS 14 World

To summarize, here are some best practices for developing a strong ecommerce growth strategy post-iOS 14:

  • Leverage First-Party Data: Prioritize collecting and utilizing first-party data to overcome limitations imposed by ATT.

  • Diversify Media Mix: Don’t rely solely on one advertising channel. Explore other digital platforms and traditional media to widen your reach.

  • Build Internal Expertise: Retain strategic functions like growth marketing in-house while outsourcing specialized tasks.

  • Invest in Advanced Tools: Use advanced data-driven marketing tools to refine ad targeting and improve attribution accuracy.

  • Choose the Right Agency: Collaborate with agencies that can complement your internal capabilities and provide targeted support.

Conclusion: The Future of Ecommerce Marketing Post-iOS 14

The iOS 14 update has undeniably shifted the landscape of ecommerce marketing, pushing brands to rethink their strategies. While the limitations in ad targeting and data privacy regulations present challenges, they also offer an opportunity to innovate and optimize. By prioritizing first-party data, diversifying the media mix, building internal expertise, and leveraging advanced tools, ecommerce brands can effectively navigate the post-iOS 14 era and maintain sustainable growth.

As the future of ecommerce marketing continues to evolve, staying agile and proactive in refining your strategies is key. With these strategies in place, your brand will be well-positioned to thrive in a data-privacy-centric digital landscape.

To learn more about the future of ecommerce marketing, check out The Operators Podcast on YouTube, Spotify, or Apple Podcasts.

Resources:

  1. E062: Special Guest Episode: Growth Marketing Ft. Sarah CarusonaThe Operators Podcast

  2. How Apple’s iOS 14 Update Impacts eCommerce Advertising - WooCommerce

  3. Three years after Apple’s iOS 14 changes, brands find Meta advertising has stabilizedModern Retail

Jason Panzer
Co-Host
Jason Panzer
President
Sean Frank
Co-Host
Sean Frank
CEO
Mike Beckham
Co-Host
Mike Beckham
CEO