2024 started with Google (finally) removing third-party cookies for 1% of their traffic. That caused quite a stir and the test results are sending mixed signals. Moreover, publishers and advertisers across the EU and North America face new regulations enforcing stricter data protection measures. Needless to say, data privacy is taking significant steps this year, and many things will change.

In the app scene, privacy has always been stricter and less accessible. Given the upcoming changes, how would in-app monetisation look for publishers? This article is here to help you find out.

Overview of Privacy Changes in 2024

The year 2024 has brought enhanced privacy regulations in the EU, including amendments to existing data protection laws that introduce tighter consent mechanisms for data processing. In North America, new state-level laws have closely mirrored GDPR standards. These regulations aim to bolster consumer privacy and establish more stringent controls over data handling—a move directly impacts publishers who rely on user data for targeted advertising.

In addition to government regulations, major tech companies have introduced measures to address public concerns about data collection. Since 2021, Apple’s App Tracking Transparency (ATT) feature has required apps on iOS apps to obtain explicit user permission before tracking activities across third-party apps and websites. This feature has limited advertisers' ability to use Apple’s Identifier for Advertisers (IDFA) without user consent and introduced additional privacy options in iOS 15 to block IP tracking.

Google has also taken drastic steps to enhance user data privacy, particularly through its Privacy Sandbox initiative. This initiative aims to phase out third-party cookies from the Chrome browser in 2025. This will fundamentally change the landscape for web publishers relying on detailed audience data to build visitor profiles. The Privacy Sandbox program encourages collaboration between developers and Google to develop privacy-first alternatives that still support businesses.

Prebid’s Mobile Taskforce has been observing privacy impacts on mobile apps and shared the trends and their implications in their Prebid Mobile Webinar on April 11th, 2024.

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Impact on In-App Advertising for Publishers

The new privacy rules mean app publishers must reevaluate how they gather and use user data.

The requirement for explicit user consent before accessing identifiers like device IDs or location data is particularly impactful. This change affects how publishers can target ads and their overall revenue from in-app advertising.

To navigate these hurdles, publishers must enhance their consent management practices and explore new, privacy-compliant methods of engaging users and monetising apps.

Comparison with Web Advertising

Web publishers face challenges, especially with the decrease in third-party cookie usage. As browsers tighten privacy, first-party data and contextual advertising are emphasized. This shift requires publishers to develop robust first-party data strategies and invest in technology enabling effective and compliant advertising.

In mobile environments, the situation differs from browsers as mobile apps aren't reliant on browser-specific rules or cookie usage like websites. Mobile apps typically utilise app-specific identifiers such as Advertising IDs (Android) or IDFAs (iOS) for user tracking and ad targeting. These identifiers are standardised across the platform, allowing publishers and advertisers to manage privacy and targeting more consistently without browser versions or settings affecting the process. Additionally, explicit user consent is often required for data collection and processing in in-app advertising, enhancing transparency and privacy.

The Way Out? 

Opt for an open framework like Prebid Mobile, which complies with transparency in ad auctions and integrates seamlessly with consent management systems. 

Web publishers testing Google's Privacy Sandbox have run into major latency issues, which could cost them a fortune. It could be possible that apps will face the same problem, making mediation a less appealing option for app publishers because it's already inefficient. Adding more lag time could turn the whole thing into a mess. Prebid Mobile, on the other hand, offers a more straightforward, faster approach, cutting down on latency and helping publishers get more control over their ads while improving the user experience.

Using Relevant Yield, publishers can quickly implement and manage Prebid Mobile. The experts at Relevant Digital completely take care of Prebid Server and the servers, saving you a great deal of resources (hot-take: in-house tech could exhaust you sometimes). 

Conclusion

There is no right or wrong way to go about this, as many things are still unfolding. Google has (again) postponed the third-party cookie phase-out to Q1 2025, giving everyone more time to test cookieless strategies (so yes, you should test). As you adapt to these changes, stay informed by listening to different perspectives and keeping up with the latest updates.

Choosing open frameworks and neutral players like Prebid Mobile seems to be the most promising approach so far. It provides publishers with flexibility and transparency as they explore new ways to manage their advertising strategies effectively.