What is Limit Ad Tracking?
Limit ad tracking (also known as LAT) is a feature which allows users to opt-out of having an ID for Advertisers (IDFA). When the setting is enabled, the user’s specific IDFA appears blank when tracked. This means that these users won’t see specific ads targeted at them as, to the networks, the device has no identity.
Attribution and conversion events (among some features) are switched off when LAT is switched on (though not quite with Adjust, as you can find out below).
Why Do Users Switch on Limit Ad Tracking?
At a time of mounting privacy concerns, users who activate the feature may be doing so to prevent data collection if they are more conscious of being tracked. Users may also be making a deliberate choice to avoid targeted ads, which for many may not make much difference when it comes to purchase decisions.
The choice isn’t necessarily made due to ad quality, but due to consciousness of privacy, or a wariness of advertisement in general. Typically, there are always users who seek privacy protection, and the setting is designed to give those users an option to remove themselves from the process. It’s important to recognize that there are always users who want to avoid advertising, and by self-policing like this the industry avoids potentially over-the-top legislation from affecting deeper parts of the ecosystem.
Reference: “Adjust,” Retrieved – 23 April 2018