About SKAN, Google Analytics 4 Firebase, and More

Today, customers spend over 4-5 hours daily (Source 1) using mobile apps. This preference translates to high expectations for brand apps.? Retailers prioritizing a smooth app experience see significant returns, with app users boasting higher average order values.? Indeed, investing in a user-friendly mobile app has transitioned from a luxury to a necessity for businesses aiming to stay competitive and leverage the high engagement levels of app users. Studies show that 62% of users cite convenience as the primary benefit of apps over websites, and 47% of retail app users appreciate the ability for quick, one-click checkouts.1

As businesses invest in enhancing the user experience, the next critical step is encouraging customers to download their apps so they can engage with them. This entails not only promoting the app but also ensuring that marketing activities are accurately measured and optimized towards app campaign goals. However, the landscape of digital measurement and attribution is undergoing significant changes due to privacy regulations and technological advances, leading to challenges such as the diminishing availability of cookies in browsers and decreasing mobile advertising IDs availability for app attribution. These shifts make measurement increasingly reliant on sophisticated tools, settings adjustments, and enhanced interaction modeling.

In this edition of our newsletter, we will explore app customer journey measurement scenarios and provide insights into making them measurable in today’s landscape, marked by stringent regulatory requirements and privacy-preserving frameworks. Join us as we navigate these challenges and uncover strategies to achieve effective measurement and attribution while preserving users’ privacy.

Source 1 : Google/Storyline Strategies, US, Feb 2022.

The Rise of Privacy-Preserving Frameworks

When discussing app measurement, two operating systems immediately come to mind: iOS and Android. By now, most of us should be familiar with Apple’s Intelligent Tracking Prevention impacting the availability of advertising cookies in Safari, and Chrome’s Privacy Sandbox, initiated at the beginning of this year to 1% of Chrome users with Google aiming to complete the rollout in Q3 this year. However, Apple's App Tracking Transparency (ATT) framework and concepts like StoreKitAdNetwork, or SKAdNetwork (SKAN), might still be enigmas to some. And what about the Android Privacy Sandbox? If these are new to you, rest assured, you're in good company. Let's bring everyone up to speed.

StoreKitAdNetwork, more commonly known as SKAdNetwork or SKAN, might seem novel but has been part of Apple's ecosystem since 2018, developed in response to growing privacy concerns over user data. Fast forward to 2020, and Apple announced upcoming restrictions for IDFA (identifiers for advertisers), which had been crucial for advertisers to measure and attribute app activities. By 2021, these restrictions were enforced through the ATT framework, significantly affecting advertisers who depended on IDFA for targeted ads and attribution.?

Now, as we navigate these changes, it's essential to adapt and understand the tools at our disposal. With the introduction of iOS 14, Apple mandated developers to secure users' permission via the ATT framework to track them or access their device’s advertising identifiers. Although this framework offers some customization options, the requirement for obtaining tracking permission from users both for the publishing app and the advertised app to enable mapping of conversion data (install or action) to ad interaction data (click or view) based on the IDFA drastically reduces the pool of trackable campaign interactions.

Here’s where SKAN comes into play. SKAN is Apple's privacy-preserving solution, enabling developers and marketers to gauge the effectiveness of their advertising campaigns on iOS without infringing on user privacy. This framework, acting as a replacement for IDFA for users who opt-out of tracking, does not require user consent under ATT. It provides advertisers with aggregated insights for advertising attribution, devoid of user-level data.

SKAN isn't alone in its journey. You might remember the article on Google’s Developer Blog introducing the Privacy Sandbox on Android from January this year . If not, let’s rephrase some of the key statements: Privacy Sandbox on Android, occasionally dubbed Android Sandbox, aligns with the Privacy Sandbox for Chrome, which Google announced three years earlier. Google's plan for this initiative on Android aims to advance user privacy while preserving the accessibility of free content and services. According to this article, Google intends to continue backing current app practices including the usage of advertising IDs for a minimum of two more years. Similarly to Privacy Sandbox on Chrome, Google is welcoming the entire industry to provide opinion and feedback and one can also subscribe to a dedicated newsletter to keep themselves informed going forward.?

Today, there are two key components forming the Privacy Sandbox on Android proposal: SDK Runtime and a set of privacy-preserving APIs:

• The Android 13 update introduces a dedicated SDK Runtime aiming to isolate third-party SDKs and enhance user data privacy. Here’s to the design proposal .
• Privacy-preserving APIs are, similarly to the privacy efforts by the Privacy Sandbox for the Web , designed to enable advertisers to personalize and measure ads while protecting user privacy through on-device processing, data aggregation, and alternative identifiers. Here, Topics, Protected Audience, and Attribution Reporting are also part of the initial proposal serving the same use cases as for Chrome’s Privacy Sandbox.

SKAN Under the Hatch

As we’ve seen – we have some more time with Android but SKAN has already arrived. So let’s start with SKAN. Assuming you are somewhat new to the concept of SKAN, you may want to learn more about the measurement opportunities offered (see also the WWDC video here ). With SKAN, you are introduced to two pivotal concepts – the concept of crowd anonymity and the concept of conversion schema:

• Crowd anonymity is here to ensure privacy by limiting the data granularity. This mechanism prioritizes user privacy by obfuscating attribution data based on the number of installs generated by a campaign. There are four tiers: 0, 1, 2, 3. Higher tiers require more installs and offer deeper insights. In consequence, advertisers need larger campaigns for meaningful data provided through reaching higher tears. This means you should push for strategic partnerships in your activation strategy and aim for larger campaign budgets as the opposite to granular campaigns.
• The aim of a Conversion Schema or Conversion Value Schema is to provide insights and flexibility while maintaining user privacy. This system allows apps to define and report multiple types of conversions (purchases, subscriptions, etc.) across three predefined conversion windows (2-days, 3-7 days, 8-35 days). Apps can assign unique conversion values to each type and window, enabling granular campaign analysis. SKAN 4.0 aggregates conversion values before sharing them, protecting individual user data. This way, advertisers gain insights into user journey stages and optimize campaigns based on specific conversion goals. You should make the definition of a Conversion Value Schema that is informed by your app data your priority.

As of 2022, SKAN has evolved to version 4.0, marking a significant enhancement over the previous iteration, SKAN 3.0. This latest version grants iOS app advertisers access to a broader array of observable data, offering deeper insights into user interactions. Below is a detailed overview of the improvements introduced with SKAN 4.0:

• While SKAN 3.0 only supported app-to-app measurement, SKAN 4.0 also reveals the app install and post-app install in-app actions of users coming from an ad displayed in Safari.
• With SKAN 4.0 you cannot only define a conversion schema consisting of 64 conversion types but also default to three groups of conversion types if for some of your conversions the requirements of the crowd anonymity concepts are not met: low, medium, and high based on your conversion type priorities. This way, you have less null values in your reports and can gain more insights into your campaign performance.
• Back with SKAN 3.0, advertisers needed to await a 24h timer to be provided their data. With SKAN 4.0 more data is disclosed to advertisers through the adoption of 3 postbacks that you can think of as conversion windows. At the same time, a greater level of privacy is ensured by the use of random timers spanning up to 144 hours of conversion delay. Overall, these mechanisms ensure you are provided more in-app event measurement data.

Currently, SKAN's capabilities focus on initial user engagement, without delving into user re-engagement. Yet, revelations from Apple at the Worldwide Developer Conference in June 2023 offer a promising glimpse into the future with SKAN 5.0: “In addition to measuring conversions after a user downloads your app, you’ll also be able to measure conversions after a user opens your app by tapping on an ad.”, Apple revealed. This update signifies a significant leap forward, as it opens new avenues for advertisers to understand and optimize the full user journey, not just the user actions after the initial download.

How to Make SKAN Work for You

If you've been relying on a Mobile Measurement Partner (MMP) such as Adjust or AppsFlyer, you might not be aware that Google Analytics 4 Firebase (GA4F) offers an alternative pathway to achieve comprehensive measurement, ensuring holistic coverage for all use cases. In the absence of user ATT consent, it becomes even more critical for advertisers to navigate conversion attribution with precision and a well-thought-out strategy. A crucial step in this process is the meticulous definition of your conversion value schema, which enables you to fully leverage SKAN's capabilities. Initially, your GA4F account may display some data prior to SKAN setup. It's important to note, however, that this information will not include users who haven't opted in, highlighting the need for additional measures to capture a complete view of your users’ interactions.

For Google Ads users, there are two primary avenues to explore:

1. SKAN definition in GA4: By connecting your Firebase account to your GA4 platform, you can define your conversion value schema directly within GA4F. This allows you to import conversions into your Google Ads account seamlessly.
2. Utilizing an MMP: Alternatively, you can opt to define your conversion value schema through the MMP of your choice and subsequently import your conversions into Google Ads.

Regardless of the approach, the visibility of your data is subject to Apple's regulations. However, integrating with GA4F might offer enhanced features within Google Ads that are otherwise unavailable.

When crafting your conversion value schema, it's essential to account for Apple SKAN's limitations and best practices such as the 64 conversion values being only available with a considerable amount of data for the first postback that is limited to the conversion window 0 – 2 days and defaulting to the conversion types low, medium and high if the data is too narrow. Consider using your GA4 Firebase data to make decisions on your schema informed by your available (unattributed) data.?

You can employ a similar approach with vendors like Meta, TikTok, and the like.

Through the Crystal Ball: The Inevitable Shift to Privacy-Preserving Frameworks in Advertising

As we explore SKAN and the emerging Privacy Sandboxes from Google, it's evident that privacy-preserving frameworks are defining the future of digital advertising. Understanding SKAN isn't just about adapting to today's privacy standards; it's about preparing for tomorrow's digital landscape. With Google's Privacy Sandbox on its way, it's clear that prioritizing user privacy isn't optional—it's essential for success in digital advertising. These frameworks signal a shift towards more privacy-focused strategies, making it crucial for us to stay informed and adaptable. SKAN, in a way, acts as our guide, offering a glimpse into the future of advertising where privacy is paramount.

Apple Developer Documentation: SKAdNetwork

SKAdNetwork 4 Release Notes

The Privacy Sandbox Proposals on Android

Developer Documentation for Privacy Sandbox on Android

Privacy Sandbox: News, Updates, and Blog Link

Developer Documentation for Privacy Sandbox Link

The Privacy Sandbox GitHub Link

On-Demand Videos

• Privacy Sandbox: Noise lab
• The latest on Privacy sandbox

SEA Stammtisch

Our colleague, Dr. Tim Hasenpusch , Business Lead at Digitl, will be one of the speakers at the upcoming SEA Stammtisch in Berlin!

In his presentation he will share insights on "?????? ???????????? ???? ???????????????? - ???????????????? ???? ?? ???????????????????? ??????????" and explore the latest tracking developments, especially relevant since Google's announcement on the third-party cookies deprecation in 2024.

?? 11th April 2024

?? 6:00 PM - 11:00 PM

?? Haasestra?e 1, 10245 Berlin

Don't miss out on this and many more interesting presentations!

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OMKMS

We are also happy to announce that we will be at the omkms.de , the ???????????? ?????????????????? ???????????????????? Münster 2024.

During the conference you will have the chance to connect with experts, gain practical knowledge and explore the latest trends in the industry.

??? 18.04.2024

?? Preu?enstadion, Münster

Tickets for the OMKMS are currently sold out. But you can still join?? the waitlist for a chance to secure your spot!

Ecommerce Day K?ln

And last but not least, Digitl will be at the upcoming 12th ??-???????????????? ?????? ???? ?????????????? on April 26, 2024!

Get fresh ideas, learn all about the latest e-commerce trends from the presentations and masterclasses and network with other entrepreneurs.?

?? 26th April 2024

?? RheinEnergieSTADION in Cologne

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See you in Cologne!

Feel free to contact us on our Website or via mail [email protected]