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With the iOS 15 update, Apple made a fundamental change. In the iPhone and iPad setup process, it added an option to turn off targeted advertising in native apps. In a presentation that the company shared with advertisers, Apple claims a majority of the people turned off the Personalized Ads toggle with minimal impact on App Store Search Ads.
iOS 15 and iPadOS 15 include a new Personalized Ads toggle during the device setup process. Using this, users can opt out of personalized advertisements with one click. The toggle ensures users aren’t served targeted ads on Apple apps such as the App Store, Apple News, and Stocks.
MacRumors reports that the presentation for advertisers paints an optimistic picture for Apple’s Search Ads business. It shows that in every country where the business is operational, 78 percent of the search volume on the App Store was from iPhones and iPads running iOS 15 with the toggle turned off. The value corresponds to the first quarter of 2022. Through this statistic, Apple suggests that advertisers can still reach the right audiences without leveraging targeted search results campaigns.
Additionally, Apple says that iOS 15 Search Ads had an average 62.1 percent conversion rate with Personalized Ads turned on. Meanwhile, Search Ads had a marginally higher 62.5 percent conversion rate with the toggle turned off. The company claims that 70 percent of the App Store visitors use the search tool to find the app they are looking for. So, search terms are direct indicators of their intent.
Notably, the Personalized Ads toggle should not be confused with the App Tracking Transparency policy. The former controls personalized ads on Apple’s own apps, while the latter is for third-party apps downloaded from the App Store. The company serves users relevant ads based on their search and download history and what they read on the News app. These Search Ads are priced with an auction-style bidding system. So, prices are lower because a larger group of people use iOS 15 with the Personalized Ads toggle turned off.