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Data Snack

Nostalgic for Old Paid Digital Prices? They’re Gone.

November 7, 2021
October 19, 2021
Mae Rice

Since iOS 14.5, the cost of paid ads has risen dramatically for e-commerce marketers, a new report says — even when they target iOS users who opt into tracking.

Table of Contents

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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.

Source: Moloco

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%.

Source: Moloco

Meanwhile, CPAs for non-LAT users grew more in H1 — 200%! — and show no signs of slowing. 

Our takeaway?

Even if e-commerce brands launch owned apps, like Madewell just did, they’ll face rising CPAs marketing them.

Facebook CPAs are also up (though hard to measure), Konstant Kreative founder Nick Shackelford told MarketerHire — as are Facebook CPMs and Google CPCs, Axios reports.

Rising costs are just... inescapable.

Mae Rice
about the author

Mae Rice is editor in chief at MarketerHire. A long-time content marketer, she loves learning about the weird and wonderful feedback loops that connect marketing and culture.

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