SKAdNetwork (SKAN) – A Comprehensive Guide

What is SKAdNetwork?

SKAdNetwork (StoreKit Ad Network) is a privacy-first framework that advertisers can use to determine the effectiveness of their ads on iOS devices. The Apple SKAdNetwork, a.k.a. SKAN, was first publicly unveiled in 2018 and has become a major part of the latest iOS feature set with the release of iOS 14.5. As an app install attribution technique, SKAdNetwork accomplishes this by hiding the user’s identity while portraying results to app marketers, who are still informed of the user’s actions and have their privacy protected.

Monitoring advertising campaigns, with users’ consent and the assistance of Apple’s recently released App Tracking Transparency (ATT) framework, is now more difficult than before due to the user’s power of privacy. Advertisers are less likely to use traditional advertising with tracking based on IDFA. 

For example, we do have other alternative solutions like SKADNetwork that are more suitable. Adopting a structured and privacy-focused method of measuring ad success is fundamental to building user trust. This is one of the lesser-discussed but key components of our ad monetization strategies. 

How SKAdNetwork Works

1. Key Components of SKAdNetwork

SKAdNetwork is achieved by a remote service intermediary logical relationship among multiple parties:

• Ad Networks: They run ad campaigns that are signed to them. They also store the attributions informed by SKAdNetwork.
• Publishing Apps: These apps are the media through which the ads are displayed, and they also have to use the SKAN so that the ad attributions occur correctly.
• Advertiser Apps: These apps are the advertisement’s objects. They get conversion values to track a limited set of post-install events.

2. Step-by-Step Process of SKAdNetwork Attribution

• A user notices an ad in a publishing app.
• The ad is checked for cryptographic signoff to make sure that the ad network has been registered with Apple.

Step 2: App Install

• If the user touches the ad (for example, clicks it) and then installs the app, the Network attributes counting of the install to the ad network.

Step 3: Conversion Tracking

• If the app is started, the advertiser can adjust the conversion value to measure post-install engagement (such as registration and in-app purchases).
• Advertisers can change the conversion value until 24 hours after the last update.

Step 4: Postback Transmission

• SKAdNetwork chooses a random time to delay user identification before sending postbacks to the ad network.
• Privacy checks verify if the conversion value is included in the postback file.

Evolution of SKAdNetwork

SKAdNetwork 1.0 (2018)

• Meeting installs attribution just with no user-level data.
• Forget converting a post-install event to a conversion value.

SKAdNetwork 2.0 (2020)

• View-through attribution service for ad shots of over ten seconds.
• Advertisers might also have postbacks generated.

SKAdNetwork 3.0 (2021)

• Which ad formats include the attribution of conversion to video ads?

SKAdNetwork 4.0 (2022)

• Hierarchical Source Identifiers: Expanded the campaign identifier length of digits from 2 digits to 4 for better granularity.
• Multiple Conversion Postbacks: Up to three postbacks that were sent at different times (0-2 days, 3-7 days, 8-35 days).
• Web-to-App Attribution: This technology is what makes it possible to track the web-based ads that result in app installations.

Challenges of SKAdNetwork

Even if the problems targeted the audience and advertising goals, it also put user data at risk:

1. Delayed Data & Limited Optimization

• Attribution postbacks are delayed by 24-48 hours, and this is preventing the real-time campaign optimization.

2. Aggregated Data, No User-Level Insights

• SKAN, in contrast to IDFA-based tracking, is a platform that only collects aggregated and not user-specific data.
• Retargeting is not possible.

3. Privacy Thresholds

• By setting up privacy thresholds, Apple limits the freedom of advertisers to access detailed data for small-scale campaigns.

4. Limited Conversion Value Updates

• Advertisers face the issue of being able to use only 64 conversion values which range from 0-63. Therefore, detailed event tracking is still a challenging matter.

Best Practices for Maximizing SKAdNetwork Success

1. Define a Clear Conversion Value Strategy

• Draw up the conversion values based on prime in-app user actions (e.g., sign-up, tutorial completion, purchases).
• Raise the points for those actions that indicate a high user intent.

2. Use Predictive Analytics

• As this Network no longer supplies post-install information, the forecasting of user lifetime value from early actions is made easier by the predictive models.

3. Work with Mobile Measurement Partners (MMPs)

• MMPs assist in the fusion of the SKAdNetwork data and its integration with other attribution models.

4. Optimize Campaign Structure for Hierarchical Source Identifiers

• Extend SKAdNetwork 4.0 by entitling its source identifiers to measure different variables (e.g., ad placement, creative type, region).

5. A/B Testing with Different Campaign Configurations

• Since it seems that unlimited tracking is not available, implementing a set of tests in controlled and small areas to find out the best ad creative, is what truly works.

Future of SKAdNetwork: What to Expect in 5.0?

Apple is busy enhancing the functionality and the adoption of this Network by advertisers. They continue with the next repetition, SKAdNetwork 5.0, and this one is expected to bring the following innovation:

1. Re-Engagement Attribution

• At the same time as its predecessors, which only monitored app installs, the rumored 5.0 version is adopted for retargeting as well.
• Advertisers will be able to monitor the return of the users to an app through the ad.
• Improved Apple’s benefits from tracking the user behavior during the lines and intermediate points.

2. Data Values for Postbacks Should Be More Specific

• Postback times and information depth may be more variable.
• The prime focus should be on providing privacy and meeting Apple’s advertisers’ requirements. Providing granular data is supposed to be the most likely direction of future SKAdNetwork updates.

Final Thoughts on SKAdNetwork

SKAdNetwork not only drives mobile advertising in a different direction but also ensures better user privacy controls that make the ad performance highly measurable. There are still other tasks that need to be accomplished, such as the new release of data or the completion of the privacy requirements. Still, ad networks and advertisers have to look for new ways of getting around these problems through predictive models, A/B testing, and conversion value optimization.

The unrelenting development through version 4.0 and above is Apple’s way of letting the world know that it is taking privacy seriously. The companies that adjust to these changes earliest will be able to stand by the privacy-first mobile advertising scenario.