In this Q&A with Unity CFO Kim Jabal, VentureBeat explores the consequences of Apple’s upcoming IDFA changes on the mobile app ad ecosystem. We dive into the tug of war between targeted ads and privacy, new competition from Epic Games, and more.Through Kim Jabal’s insights, we can better understand the implications of Apple’s IDFA changes and how it will shape the future of advertising in mobile apps. Let’s dive in.
Q&A with Unity CFO Kim Jabal, about the impact from Apple’s upcoming IDFA changes, the tug of war between targeted ads and privacy, competition with Epic, more (Dean Takahashi/VentureBeat)
Apple first introduced Identifier for Advertisers (IDFA) in 2011, and it has been used as an identifier code to track how users interact with apps. However, Apple announced plans with the release of iOS 14 earlier this year to phase out IDFA due to privacy concerns and give users the freedom to opt out of tracking. This change has led many companies to consider the impact they will face when the switch goes live.Apple’s upcoming IDFA changes include disabling default access for certain data including device identifiers such as IDFA, and limiting access to certain private user data including location information. Apple is also expected to add a new App Tracking Transparency framework which will require developers who want to request permission from users for targeted ad or analytics purposes, or use 3rd-party services for targeted ads/analytics, must ask for explicit permission from users first. Additionally, all app developers must provide their own privacy policies that explain what user data their app collects and how it is used; if not compliant with Apple’s requirements, those apps could be removed from the App Store at any time.These changes are expected to have a significant impact on app developers, advertisers, digital publishers and many other stakeholders in the digital advertising world who rely on tracking technology provided by 3rd-party vendors like Unity Technologies. It’s important that all stakeholders understand what these new changes mean so they can strategize accordingly and protect their businesses in a post IDFA world by thoughtfully navigating Apple’s upcoming Privacy Update.
Interview with Unity CFO Kim Jabal
Recently, Kim Jabal, CFO of Unity, spoke to VentureBeat to discuss the impact of Apple’s upcoming IDFA changes, the ongoing tug of war between targeted ads and privacy, the competition with Epic, and more.In this interview, Kim offers insights into how these changes may affect the ad tech industry, as well as other areas of the industry.Let’s dive into this Q&A and explore Kim’s thoughts on the matter.
Discussion of the impact from Apple’s upcoming IDFA changes
Unity CFO Kim Jabal discussed the impact from Apple’s upcoming IDFA changes in an exclusive interview with VentureBeat, emphasising that the evolving relationship between targeted ads and privacy is a growing point of contention.
According to Jabal, Unity “has been in talks with Apple about what’s happening with iOS 14 since we first heard about it last summer.” She believes that the App Tracking Transparency initiative will be a “positive step forward for digital advertising and developers.” Jabal notes that this newly established transparency between advertisers and users is “a win-win — consumers feel more secure, while the industry can continue to explore personalization opportunities that go beyond cookie-based tracking.”Jabal goes on to remark how competition has changed in mobile gaming in recent years due to new players such as Epic Games entering the market, which has made targeting ads even more important as developers push for greater customer loyalty. However, she also highlighted some of Unity’s initiatives as helping keep Unity competitive including its “cross-site retargeting capability, where [advertisers] can target their desired audience across multiple apps built with Unity Ads by leveraging our scale instead of individual IDs from each app developer.”These techniques have helped bolster the performance of ads within apps using Unity’s software game engine and boosted Unity’s revenue streams through its own products–outperforming competitors like Google AdMob despite their much larger size. As Apple prepares its changes to affect digital ad tracking practices worldwide, it will be interesting to note how companies like Unity adjust their strategies and continue innovating online advertising technologies.
Discussion of the tug of war between targeted ads and privacy
The issue of data privacy has become a major topic for tech companies this year with moves by both Apple and Google to restrict how data can be used for targeted ads. In an interview, Unity CFO Kim Jabal discussed the tug of war between targeted ads and privacy and how it relates to the gaming sector.Jabal noted that the power of targeted ads is undeniable, but that there needs to be a secure balance between them and user privacy.
She said that gaming companies, such as Unity, must take steps to protect user data while also maintaining their ability to use targeted ads. One potential solution she mentioned was offering users more control over their personal data in terms of allowing them to opt-in or opt-out of sharing information with game companies.The other issue at play with regards to Apple’s upcoming changes is competition between different gaming platforms. Jabal noted that Unity does not see itself in direct competition with companies such as Epic because it serves different purposes: “We are here as a partner and an ally for developers – helping them leverage our platform so they can focus on creating the best experiences possible,” she said. Ultimately, while she acknowledged there will be disruptions thanks to these changes, Jabal is confident that innovation will drive progress in the gaming industry regardless of what regulatory decisions are made.
Discussion of competition with Epic
CFO Kim Jabal of Unity Technologies discussed the competition posed by Epic Games in terms of engaging with recent changes in Apple’s IDFA (Identifier for Advertisers) standards. According to Jabal, “Epic has done a great job and they’re a tremendous competition, but we don’t really see them as direct competitors at this point. We actually have found that developers are using both our and Epic’s solutions to power their monetization strategies, so there is no real tension between us in that sense.
So I suppose the question isn’t so much about how we differentiate from Epic, but more how Unity differentiates from all other technology providers to increase engagement and monetization for developers across our many platforms.”
Other topics
In this VentureBeat Q&A with Unity CFO Kim Jabal, Dean Takahashi spoke with her about other topics such as the company’s competition with Epic, how Apple’s upcoming IDFA changes will impact the company, how it is adapting to increasing calls for privacy and tougher regulation of targeted ads and data gathering, the possible implication of app store fees on gaming services and creators, the changing independent developer landscape, what opportunities Unity sees in XR’s growth in video games, and more.
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tags = Unity CFO Kim Jabal, Apple, IDFA , qa unity kim jabal idfa epictakahashiventurebeat, Unity Technologies, ads and privacy, competition, Epic
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