Revisiting Organic Customer Acquisition After ATT

Apple's implementation of the App Tracking Transparency (ATT) policy, announced at WWDC and enacted with iOS 14.5, has significantly impacted app developers and marketers by requiring user permission before accessing IDFA or personal data, leading to increased customer acquisition costs and reduced targeting precision. This shift has notably affected companies like Snap and Facebook, which reported financial hits directly linked to ATT. Despite the immediate challenges, such as a 20-30% rise in customer acquisition costs and decreased marketing efficiency, Eric Crowley, executive director of GP Bullhound, remains optimistic, suggesting that businesses will adapt and benefit in the long term by reassessing strategies, such as focusing on core app marketing and refining the lifetime value (LTV) metric. Crowley emphasizes the importance of distinguishing "locals" from "tourists" among users to more accurately gauge LTV and tailor app features and acquisition strategies to meet the needs of the most committed users, which could lead to sustainable growth and stronger community engagement over time.