How Will the iOS 14.5 Update Impact Real Estate Marketing?
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Have you heard the buzz surrounding Apple's iOS 14.5 update? It isn't the new fire heart emoji that has everyone talking - it's the new App Tracking Transparency (ATT) feature that's making headlines.
This new feature allows users to allow or not allow apps to track activity across other companies' apps and websites. While Apple is portraying itself as pro-privacy, Facebook is publicly fighting back and criticizing the changes.
But what does this mean for real estate marketing?
In this episode, I'm covering what ATT is, how it will impact Facebook advertising, my opinion on the real estate search apps, and what the takeaways are for real estate agents.
What is the iOS 14.5 Update & ATT?
Apple routinely issues updates to improve its user experience. In fact, Apple's support states, "iOS 14 and iPadOS 14 make your iPhone, iPad, and iPod touch even more intelligent, more personal, and more private."
The emphasis here is on "more private."
With the release of iOS 14.5, Apple announced its new App Tracking Transparency (ATT) feature. ATT requires that app makers must receive user permission to "track your activity across other companies' apps and websites."
Once you've upgraded, you'll soon see pop-up boxes where you can "ask app not to track" or "allow" the app to track you.
Apple even released this compelling video explaining ATT and ending with the tagline, "Privacy. That's iPhone."
After watching the video, you can't help but feel like Apple is watching out for you. The soft twinkling music accompanied by the trustworthy voice and dialogue all aid in their animated explanation.
At the same time, many are stating the video is a thinly veiled criticism of Facebook. With Facebook going so far as saying that "Apple's new iOS 14 policy will have a harmful impact on many small businesses."
I have not seen an "Ask to Track" pop-up from most of my apps after upgrading, and that's not surprising. There have been reported inconsistencies as many app developers work towards compliance. This delay can be a major disappointment for those users impatiently awaiting iOS 14.5. However, Apple has indicated that they will not provide the IDFA code that identifies you to app developers without you accepting the pop-up.
As a user, you might be excited for ATT to be fully implemented, but how does it impact advertising your real estate business on platforms like Facebook?
The day after I updated to iOS 14.5, I finally got a notification from Facebook.
Before the "Ask to Track" pop-up appeared, a full-page screen appeared from Facebook announcing that I was on iOS 14.5, and the version of iOS required them to "ask for permission to track some data from this device to improve your ads."
I watermarked the notification I received above because I'd read rumors speculating whether Facebook was displaying this prior to the pop-up. Yes, there is no question. This is the exact notification I was shown, which you can preview from Facebook here.
Many people have an issue with Facebook's notification, and how they could be influencing users with their language.
The lines "Help keep Facebook free of charge" and "support businesses that rely on ads to reach their customers" clearly catch your attention and spark more debates.
Will Facebook start charging if people don't opt-in? Is this change actually hurting small businesses during a tumultuous time for many?
I've read entire articles on each of those questions, and Facebook is clearly positioning itself as pro-small business.
In their announcement, "Speaking Up for Small Businesses," they go so far as to say about Apple, "They're hurting small businesses and publishers who are already struggling in a pandemic. These changes will directly affect their ability to use their advertising budgets efficiently and effectively." They also state, "We disagree with Apple's approach, yet we have no choice but to show their prompt."
These are strong statements, and after the public's growing concern over privacy from the social networking sites, it can be confusing as an average user. What do you believe?
Let's take a look at how this change could impact real estate marketing on Facebook.
Facebook Advertising for Real Estate & iOS 14.5
Over the years, advertising real estate on Facebook has dramatically changed. From reduced reach on Facebook business pages to the rising cost of ads to the special advertising category for Real Estate, our industry is no stranger to changes in Facebook ads.
According to Facebook, these changes will impact "businesses that advertise mobile apps, as well as those that optimize, target, and report on web conversion events from any of our business tools will be affected."
If you're advertising as a real estate agent on Facebook, the biggest changes you might notice are in regards to retargeting and tracking your ad conversions. If iPhone users opt-out of tracking, advanced targeting options could be limited and may impact the personalization of ads.
If you're running ads optimized for conversion events, Facebook has outlined actions you can take to help prepare for the changes. These recommendations are technical but include:
Updating to Facebook's SDK for iOS 14 version 8.1
Verifying your website's domain in the Facebook Business Manager
Choosing only 8 conversion events to track
Being aware of the new 7-day timeframe for attribution
So, does this change mean that Facebook is no longer a good place to advertise real estate?
In my opinion, despite all the media surrounding these changes and the perceived Facebook vs. Apple boxing match, Facebook is still a viable platform for advertising and lead generation for real estate agents and brokerages. The changes will impact some more advanced ad conversion tracking, and we'll have to see what happens to ad performance over time.
However, I am keenly interested in how these changes could impact the major apps and consumer-facing search sites in the real estate industry. This issue is especially relevant with the growing concern about privacy and big data.
So, What About Zillow or Realtor.com?
I was surprised to find that there wasn't much information online about the iOS 14.5 update and its potential impact on real estate marketing.
I've heard, over the years, a growing amount of negative sentiment in regards to some of the larger real estate tech companies and their use of privacy and data.
If you watched the video from Apple above, it goes on to say,
"...some apps have trackers embedded in them that are taking more data than they need. Sharing it with third parties, like advertisers and data brokers. They collect thousands of pieces of information about you to create a digital profile that they sell to others. These third parties use your profile to target you with ads…"
Does that experience sound familiar?
Interestingly, The Wirecutter did a study of 250 apps to see how they were tracking us. The study found that 12 of the 13 house or apartment hunting apps they analyzed used data for tracking.
They go on to say, "bad news for privacy fans who are dream-scrolling Zillow for houses: Of all the categories we looked at, these apps shared the most data, everything from browsing history outside the app to contact info to "User Content."
They found through their tests that these apps send data to an average of five third parties!
What stood out to me is that of the categories they analyzed real estate search apps shared the most data. I, personally, don't believe that limiting small business advertising was the intention of Apple's ATT. It's the sharing of data to third parties that concerns most people.
After I updated to iOS 14.5 the first apps I opened were the real estate search sites. I didn't receive any pop-ups from Zillow even after logging in and out of the app. However, I did receive an "Ask to Track" pop-up from Realtor.com, which I've screenshotted below.
Information from apps is used for ad retargeting, and the big real estate tech companies, just like Facebook, are not immune to this. In the hot market we are in now, buyers are flocking to these apps to look at homes for sale, and it's no secret how much money the search sites make from selling those leads to real estate agents.
In a time where you are constantly hearing about how "real estate tech companies are disrupting the industry," I can't help but wonder how these tech companies could potentially be disrupted as well.
While I'll be following how these changes continue to impact the large tech companies in the real estate industry, what does this mean for the average agent?
Takeaways for Real Estate Agents from iOS 14.5
There will always be changes in technology and platforms. It's crucial to diversify your marketing efforts so the next significant change doesn't dramatically impact your real estate business.
If you're reading this article, you're probably not in the business of selling data to third parties.
You're in the business of developing relationships that lead to your ideal buyer or seller. Digital and social media marketing is constantly evolving, and how you consistently show up, provide value, and create genuine connections is what will make a difference.
If you're heavily invested in Facebook paid advertising, take a look at their Business Help Center for more information on the actions you can take. But it's important that you always keep in the back of your mind how much of your business is determined by paid ads or purchasing leads of any kind. That type of marketing could easily be interrupted at any time, as we're seeing from this iOS 14.5 update.
I'd also recommend you take time to:
Learn to focus your marketing on your customer and not yourself. If you lead with a value-based approach to content marketing, you can attract people to you instead of paying for leads.
Create a marketing plan that encompasses a variety of advertising methods. You don't want a change in one of your marketing channels to impact your entire business. Follow a strategic plan.
Focus on building your personal branding as an agent. The more you can develop your branding, the more opportunities you can create for yourself. We want people to know you as the go-to local agent.
Don't rely on paid ads for social media marketing. Continue to use social to connect with your ideal customer by showing up consistently with engaging, targeted posts. It is still possible to grow organically (outside of paid ads) on platforms like Instagram, and your personal Facebook page is a great way to create deeper connections with those you already know.
Stay up to date with real estate marketing trends. While you don't have to try every new idea out there, it's essential to know what's going on. That way, you can decide for yourself what will work for your business, what industry changes could impact you, and how you will plan for the future. I’d recommend you subscribe to my podcast, Ideas for Real Estate, for more.
The fate of Facebook advertising or the next great app shouldn't define your success in real estate. Define your success for yourself.
What are your thoughts on this topic? Comment below with your input!