The App-ocalypse: most app marketers have lost revenue (and sleep) as new ad regulations bite

Continuing changes to privacy and ad regulations forces marketers to rethink user acquisition strategies, with 63% actively looking for new ways to target paying users.

Over half (59%) of app marketers have lost revenue as a result of Apple’s IDFA changes, the phasing out of third party cookies by Google, new privacy updates, and changing ad regulations, according to a new report.  

‘The App-ocalypse’, the new report from Bango, reveals that marketers are experiencing a negative impact to their bottom line due to new ad regulations and privacy changes. 

The report identifies ‘the four horsemen of the App-ocalypse’ which are changing the face of app marketing forever:

  • The phasing out of Cookies

  • iOS IDFA changes

  • Mounting government regulation

  • Privacy-conscious consumers

The research, which surveyed over 300 app developers and app marketers, found that 64% of marketers are concerned about the implications Google’s removal of third-party cookies will have on their user acquisition strategy, with 21% being very concerned. 

To compound the scale of the problem, 61% of marketers have also reported that they have lost sleep because of the new changes.

Rethinking customer acquisition strategies

The Bango report also discusses the iOS IDFA privacy changes already in effect – which allow users to opt out of being tracked. Although the updates have complicated user acquisition strategies, marketers do understand the need for privacy. In fact, 59% agree that user privacy is a top priority for their company in 2022.

Nevertheless, concerns about how to acquire new users are still rife, with 61% of marketers agreeing that they’re having to rethink their user acquisition strategy. 63% are actively looking for new ways to target paying users without IDFA, cookies or data privacy issues. 

The Bango report, authored by Anil Malhotra, CMO, and Brett Orlanski, SVP Bango Audiences, argues that in a new privacy conscious world the only way to reach new paying app users is to re-think strategy and adopt purchase behaviour targeting. 

“Zombies that they desperately need to bring back to life”

Anil Malhotra, co-author of the report, said: “Traditional audience targeting might have worked once upon a time but new changes and regulations have made – at least from the point of view of app marketers – users unreachable, and unattainable, like zombies that they desperately need to bring back to life. 

“In this new world, marketers are having to rethink their user acquisition strategies or risk falling victim to the App-ocalypse. App marketers need a new solution, one that complies with privacy regulations and yields a high return on their marketing investment.”

To view Bango’s interactive research summary, click here.

 

 


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