E-commerce marketers: The old world of paid digital is gone, a new report from mobile DSP Moloco suggests.
Sure, you can target iOS users who opt into tracking — but that costs 2X what it used to, according to data from 30 ad campaigns for e-commerce apps.
The ads — placed in popular apps for media, gaming and more — were bought via real-time bidding, so advertisers bid on LAT and non-LAT users separately.
Tracking CPAs over time
For iOS users with limited app tracking (LAT) enabled — either at the device level or the app level — average costs per action (CPAs) more than doubled in H1.
The average LAT CPA post-iOS 14.5 was 155% higher than the average LAT CPA from January through April.
Primary actions tracked? App sign-ups and in-app purchases, Moloco told MarketerHire.
Costs seem to be plateauing, though. In June, CPAs for LAT users actually dropped 6%.
Meanwhile, CPAs for non-LAT users grew more in H1 — 200%! — and show no signs of slowing.
Even if e-commerce brands launch owned apps, like Madewell just did, they’ll face rising CPAs marketing them.
Rising costs are just... inescapable.