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One In Four App Businesses Set To Close Due To New Privacy Standards And Changing Regulations

Continuous changes to privacy and ad regulations makes it harder for businesses to reach new paying users for their apps 

Over a quarter (27%) of app developers and marketers strongly believe that their business will cease to exist once new ad regulations and privacy changes come into effect. That’s according to the latest research from adtech company c.

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The research, which surveyed over 300 app developers and app marketers, revealed that Apple’s IDFA changes, the phasing out of third-party cookies by Google and mounting government regulation are a growing cause for concern, with three in five (59%) stating that, due to these changes, it has “never been more difficult” to acquire new paying users for their apps.

Acquiring new paying users is the most important aspect of their job, according to two thirds (66%) of app marketers. And yet, 66% also say that they’re struggling to accurately target and reach paying users. Faced with this new challenge, 65% are on the lookout for new, more privacy-friendly targeting techniques that do not rely on IDFA or cookies.

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Commenting on this change, Brett Orlanski, SVP Bango Audiences said, “It’s no surprise that the changing privacy landscape is impacting app developers and brands, but it is remarkable to discover the extent to which businesses are facing an existential threat. Many developers have built their entire user acquisition strategies around invasive data collection, which cannot survive this ‘App-ocalypse’.

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“As an industry, app developers need new forms of user acquisition that support personal privacy choices. Good targeting doesn’t have to be based on invasive personal information. It can simply be based on what customers want to buy.”

To achieve this, Bango proposes the adoption of ‘Purchase Behavior Targeting’. This technology allows app marketers to promote their apps based on what users have previously bought — without the need for cookies or IDFA tracking. According to Bango’s data, 61% of app developers and marketers consider Purchase Behavior Targeting to be an effective, new user acquisition technique in the new landscape.

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[To share your insights with us, please write to sghosh@martechseries.com]

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