While ad companies and marketers have used the IDFA to keep tab on iPhone users personal data between different apps in order to serve targeted ads and also, track how their ad campaigns have performed.
Now, the Chinese Advertising Association (CAA) has devised a scheme that's aimed at bypassing the new privacy rules introduced by Apple and allow ad companies to continue the tracking of users without having to rely on the IDFA; this they hope to achieve with an identifier called the China Anonymization ID (CAID).
How the China Anonymization ID (CAID) will help advertisers to serve Targeted Ads
The China Anonymization ID (CAID) possesses the characteristics of anonymity and decentralization, which means it doesn't collect private data. It only transmits the encrypted result, and the result is irreversible, thus protect the privacy and data security of the end user.
And since CAID doesn't depend on Apple IDFA, it can generate device identification ID independent of the IDFA, which it uses as an alternative to device identification for any iPhone running iOS 14 and as a supplementary solution if IDFA isn't available.
Albeit, CAID has not been formally implemented, as the tool is presently under testing by a number of China's largest ad tech companies, including Tencent, with several other foreign advertising companies haven applied on behalf of their Chinese partners, according to a report by the Financial Times.
However, it remains to be seen if CAID will get a green-light from Apple, as the proposal from the Chinese Advertising Association (CAA) is currently been actively communicated to the Cupertino-based company, which the report claims that "Apple is aware of the tool, but seems to have turned a blind eye to it."
The Future still looks bleak for Targeted Advertising
Google had recently announced a highly monumental change to its Chrome browser, which over the course of next two years, will phase out support for third-party cookies. The crumbling of cookie has definitely raised a lot of arguments among advertisers and publishers, as it will negatively impact online marketing.
If perhaps, third-party cookies are wiped out in Chrome, it simply means online advertisers will be unable to serve targeted ads for almost half of these audience, as statistics puts it at about two billion installation and one billion people using the browser each month.