Is Apple harvesting adtech data?

Clickbait title was specifically tied to Digiday video with the spicy comment on "...it's our turn to track The Trackers", check the a quick video:

Personally, I thought it was a brilliant video depicting Apple strategy, collecting vast metadata across publishers, media owners and SDK vendors for ads tracking, segmentation and measurement. You can only start to imagine how valuable this data can be for any analysis before Apple makes its final Privacy Act.

For completeness, sharing privacy data manifest consists of four major components:

• Apps Tracking status
• Data Types collected (14 types + custom)
• List of connected tracking Domains
• iOs API access reason

This meta data will paint a true picture of the In-App advertising ecosystems tracking and disallowing "fingerprinting" for bad actors. Now, let's share what Privacy Data Manifest is all about...

Apple's recent privacy updates, notably through its App Tracking Transparency (ATT) feature introduced in iOS 14.5, have significantly altered the landscape of digital privacy and data usage. These changes have profound implications for Software Development Kit (SDK) vendors, advertisers, and app developers, fundamentally reshaping how user data is accessed and utilized.

The central element of Apple's privacy changes is the requirement for apps to obtain explicit user consent before tracking their activities across other companies' apps and websites. This is operationalized via a prompt asking users to permit or deny tracking, which directly affects access to the Identifier for Advertisers (IDFA). IDFA is a unique device ID used for tracking user interactions across different apps and websites, crucial for targeted advertising and performance measurement.

These changes by Apple present several challenges and opportunities for SDK vendors:

1. Limited Data Access: Without user consent for tracking, SDKs relying on IDFA for ad targeting, attribution, and analytics face restricted access to valuable user data. This limitation hampers targeted advertising capabilities and complicates the measurement of advertising effectiveness.
2. Alternative Data Strategies: In response to these limitations, SDK vendors need to explore alternative data collection methods that comply with Apple's guidelines. This may involve pivoting to contextual advertising strategies that don't depend on personal data or devising new metrics for user engagement and advertising effectiveness.
3. Enhanced Focus on Privacy: Apple's policy enforces a greater emphasis on user privacy in SDK development. Vendors are now compelled to incorporate advanced data anonymization techniques and be transparent about their data usage practices.
4. Building User Trust: Compliance with these privacy standards can help SDK vendors strengthen their brand image and build trust among app developers and end-users. In an era where users are increasingly concerned about their digital privacy, SDKs that prioritize user consent can gain a competitive edge.
5. Impacts on Revenue Models: For SDK vendors, especially those in advertising and analytics, reduced tracking capabilities could significantly impact revenue models that rely on detailed user data.
6. Innovation in Advertising Technology: The new privacy landscape may stimulate innovation in advertising technology. SDK vendors are incentivized to develop new, privacy-compliant technologies and methodologies for targeted advertising and performance measurement.
7. App Store Compliance: Ensuring adherence to Apple’s privacy guidelines is critical. Non-compliance can result in apps being rejected from the App Store, negatively affecting both the SDK vendor and their client apps.
8. Shift to First-Party Data: With limitations on third-party data usage, there's a growing shift towards leveraging first-party data. SDKs that help apps collect and utilize their own data effectively while respecting user privacy can see increased demand.
9. Global Impact: While these changes are specific to Apple’s iOS, their influence extends globally. They set a precedent for privacy and data usage that other platforms and regulatory bodies might follow.
10. Need for Clear Communication: SDK vendors must clearly communicate the value and purpose of data collection to users. Effective and transparent communication can increase the likelihood of users consenting to data tracking.
11. Diversification of Revenue Streams: To mitigate the impact on revenue, SDK vendors might need to diversify their offerings, potentially expanding into areas less reliant on user data tracking.
12. User Experience Enhancement: With a focus on privacy, SDK vendors have the opportunity to innovate in ways that enhance the user experience, making apps more engaging and user-friendly while maintaining privacy standards.
13. Regulatory Compliance: Beyond Apple’s guidelines, SDK vendors must also be mindful of various global privacy regulations like GDPR and CCPA, ensuring their solutions are compliant.

In summary, Apple’s privacy manifest, particularly the ATT framework, represents a paradigm shift in digital advertising and data privacy. It challenges SDK vendors to rethink their strategies, prioritize user privacy, and innovate in creating new, compliant solutions. While these changes pose significant challenges, particularly for those reliant on detailed user data, they also present opportunities for growth, innovation, and building stronger trust with users. Adapting successfully to these changes is crucial for SDK vendors to remain relevant and competitive in the rapidly evolving digital landscape.