YouTube introduces ATT prompt – a game-changer for mobile user acquisition

June 2024 marks a significant change in YouTube’s approach to advertising as the platform begins displaying Apple’s App Tracking Transparency (ATT) prompt to users. This move aligns YouTube with other major apps that have already adopted this practice, marking the end of YouTube’s historical exception in not pushing Apple’s prompt for user tracking permission.

Chapters

• 00:00 – Cold open
• 00:10 – YouTube’s new ATT prompt
• 01:04 – You should start testing on Google iOS again
• 02:00 – Caveats with scaling on Google Ads for iOS
• 03:18 – This is good for Google’s ad revenue, too
• 03:30 – Sponsor plug

Key Details

• Selective Display: The ATT prompt will not be shown to all users. YouTube Premium subscribers and child accounts will be exempt, meaning only standard users will be asked to opt-in for tracking.
• Impact on Opt-in Rates: Historically, opt-in rates for tracking on YouTube have been some of the worst in the industry. By introducing the ATT prompt, these rates should improve – although they are expected to remain lower compared to other channels that already use attribution methods effectively.

Importance for Attribution and Ad Performance

The introduction of the ATT prompt is pivotal for attribution, enabling more accurate tracking of user interactions across different platforms. This change is expected to benefit advertisers, particularly game marketers, in several ways:

Enhanced Targeting Capabilities

• More Accurate Data: Users who opt-in will allow YouTube to track their activities across various apps and websites, providing a richer dataset for advertisers. This enables more precise targeting and helps in crafting campaigns that resonate with the specific interests and behaviors of potential players.
• Improved Ad Relevance: Access to broader user activity data allows for the creation of highly targeted campaigns, leading to higher engagement and conversion rates.

Better Ad Performance Measurement

• Detailed Metrics: The opt-in feature facilitates comprehensive ad performance measurement by linking user interactions across multiple platforms. This helps game developers understand the effectiveness of their campaigns and refine their strategies for better outcomes.
• Optimization Opportunities: Detailed insights into user behavior and ad performance allow marketers to optimize their campaigns in real-time, improving ROI and reducing wasted ad spend.

Increased User Engagement

• Personalized Ad Experience: Users who opt-in will receive ads that are more relevant to their interests, which can lead to higher engagement rates. For game developers, this means that ads promoting their games are more likely to capture the attention of potential players.
• Positive Brand Perception: Delivering ads that align with user interests can enhance the perception of the game brand, fostering a positive relationship with potential players and increasing the likelihood of downloads and in-app purchases.

Implications for the Advertising Industry

UA Viability on Google Ads for iOS

The introduction of the ATT prompt reopens Google Ads on iOS as a viable channel for user acquisition (UA), which had been significantly limited due to the lack of tracking consent. This change is expected to revitalize the use of Google Ads for iOS, providing new opportunities for advertisers to reach their target audiences effectively.

Shift Towards Quality Over Quantity

• Targeted Campaigns: With the ability to gather more accurate data, marketers will need to focus on creating highly targeted campaigns, moving away from broad, less effective targeting methods. Understanding user behavior and preferences will be crucial in this new landscape.
• Content Relevance: Game marketers will prioritize creating relevant and engaging ad content that appeals to specific user segments. This shift towards quality content is expected to lead to more meaningful interactions and higher conversion rates.

Increased Focus on User Privacy

• Transparency and Trust: The ATT prompt enhances transparency, giving users more control over their data. Game marketers will need to build trust by clearly communicating the benefits of opting in for personalized ads and ensuring data privacy.
• Compliance and Adaptation: Marketers must stay compliant with evolving privacy regulations and adapt their strategies to align with user preferences and regulatory requirements.

New Opportunities for Innovation

• Creative Ad Formats: With the availability of more granular data, marketers can experiment with innovative ad formats and personalized content to capture user attention effectively.
• Enhanced User Experience: By leveraging detailed user insights, game developers can create tailored experiences within their games, improving player retention and satisfaction.

Upptic’s Recommendation

In light of these changes, Upptic suggests scaling back up ads on YouTube. As Google’s algorithm remains a black box, the improved opt-in rates and enhanced data accuracy should lead to better ad performance. This will also likely positively impact Google Ads’ upcoming revenue – great news for those who have stock in the company.

The introduction of the ATT prompt on YouTube represents a significant shift in the advertising landscape, with far-reaching implications for marketers and advertisers. By enabling more accurate data collection and improved targeting capabilities, this change is expected to enhance ad performance, increase user engagement, and ultimately drive better outcomes for game marketers and other advertisers on the platform.