Snap Tells Investors Apple's Opt-In Ad Tracking Privacy Measure Presents 'Risk' to Advertiser Demand

[MacRumors]

With Apple's upcoming iOS 14 privacy changes looming, Snap on Thursday warned investors that they could hurt Snap's ad business (via Reuters).

Starting with the next versions of iOS 14, iPadOS 14, and tvOS 14 due to be released in the early spring, Apple's App Tracking Transparency privacy measure will require all apps to request the user's permission to track their activity across other apps and websites.

Granting permission would allow developers to access the random advertising identifier, known as the Identifier for Advertisers (IDFA), on the user's device for targeted advertising purposes or to measure how effective their campaigns were.

According to Snap, makers of Snapchat, any changes to iOS are "usually disruptive" and present an uncertain outcome, and the planned IDFA changes could present a "risk" to advertiser demand. However, the company added that it was unclear how that could affect business in the long-run.

A handful of ad networks and companies have criticized Apple's decision, including Facebook, which ran full-page newspaper ads and launched a website claiming that Apple's tracking change will hurt small businesses financially.

But during an earnings call with analysts, Snap Chief Business Officer Jeremi Gorman reportedly struck a different tone, saying that Snap shares Apple's philosophy on protecting users' privacy.

"We admire Apple and believe they are trying to do the right thing for customers," Gorman said, adding Snap is well prepared to guide advertisers through the iOS changes.

During the earnings call, Snap revealed that user growth and revenue beat analysts' fourth-quarter estimates. SnapChat made the biggest gains outside the U.S. and Europe, with 55% growth in daily active users. Revenue generated mainly from ad sales grew 62% to $911 million, easily surpassing Wall Street's consensus estimate of $857.4 million, reports Reuters.


Article Link: Snap Tells Investors Apple's Opt-In Ad Tracking Privacy Measure Presents 'Risk' to Advertiser Demand

 

[farewelwilliams]

people still use snapchat?

 

[Captain Trips]

Starting with the next versions of iOS 14, iPadOS 14, and tvOS 14 due to be released in the early spring, Apple's App Tracking Transparency privacy measure will require all apps to request the user's permission to track their activity across other apps and websites.

Can't get here soon enough. Not that I want the release to be rushed, I can be patient for a better release.

But I am looking forward to the privacy enhancements to come, starting with what is planned for iOS 14.5.

 

[warp9]

I wonder if it's occurred to any of these fools that their revenue is ill-gotten in the first place. They took advantage of weak security and policies and now they think this is just normal. It's time to reset the baseline. No more free rides at the expense of privacy.

 

[Piggie]

people still use snapchat?

Almost 250 million daily users as of the end of last year:

 

[robjulo]

people still use snapchat?

Did you do even one iota of research before making that comment, or were you just trying to be hip?

 

[PlainviewX]

I really don't care. Charge monthly for your app. That way, people who really want to use it, will use it.

 

[Gherkin]

I wonder if it's occurred to any of these fools that their revenue is ill-gotten in the first place. They took advantage of weak security and policies and now they think this is just normal. It's time to reset the baseline. No more free rides at the expense of privacy.

Exactly.

I've always liked having different electronics from a variety of manufacturers, but if Apple really cracks down here I'll be all in on everything Apple (phone, computer, tablet, etc).

 

[az431]

people still use snapchat?

Snapchat is among the top 10 most downloaded apps, and pulled in $2 billion in revenue last year. So yes, seems like people do use it.

 

[kc9hzn]

I feel like there’s a bit of a tech advertising cartel. One of the most common ways large cartels collapse is when one of the members or customers realizes that being part of the cartel isn’t really beneficial to them and that, by attacking the pricing model of the cartel, they can benefit (often, a member of the cartel will decide they want market share at the expense of the others, so they’ll drop their price below cartel prices). Apple does seem to be attacking the pricing model of the tech advertising cartel, which, of course, raises the screaming and howling of the companies in the cartel.

 

[UndefinedxJoker]

The company that makes Snapchat? Do they make anything else?

 

[ruka.snow]

Did you do even one iota of research before making that comment, or were you just trying to be hip?

One of the benefits of saying something is dying like Facebook and Snapchat is that it starts to worm its way into peoples minds and slowly but surely it takes hold. MySpace and others where killed off in similar fashion.

 

[Robert.Walter]

Since they only are required to report material changes, I guess we know now how significant ad tracking is to Snap’s business.

 

[Robert.Walter]

Did you do even one iota of research before making that comment, or were you just trying to be hip?

It felt true to me.

kinda like “who needs to snap when one can tiktok?”

 

[PinkyMacGodess]

Um, maybe these corporations shouldn't have been making their business dependent on their users allowing their lives to be sold? (The default 'opt-in' sell out scam has made them lazy?)

I mean, aren't there other ways for them to make money than selling out their users?

You would think that they are being put back in the stone age. Sure, it's easier to sell your users out, it's automatic, but doing their original job seems so foreign and 'hard' for them... WAH WAH WAH...

 

[Robert.Walter]

The company that makes Snapchat? Do they make anything else?

May still have a few pairs of glasses to sell if there’s anybody still there to answer the phone.

 

[LarryNyquil]

But during an earnings call with analysts, Snap Chief Business Officer Jeremi Gorman reportedly struck a different tone, saying that Snap shares Apple's philosophy on protecting users' privacy.

Lol, nothing like getting your story straight before talking to people.

 

[PinkyMacGodess]

Since they only are required to report material changes, I guess we know now how significant ad tracking is to Snap’s business.

I imagine it's been very profitable, and not just for the ad revenue. I'm sure they have been selling their users out to anyone willing to offer any money for the data. It was to be too tempting. Legislation should have been created and passed decades ago to protect users, but money is speech in DC, and the states, and money speaks VERY LOUDLY, tragically...

 

[LarryNyquil]

I mean, aren't there other ways for them to make money than selling out their users?

You would think that they are being put back in the stone age. Sure, it's easier to sell your users out, it's automatic, but doing their original job seems so foreign and 'hard' for them... WAH WAH WAH...

That requires effort to create a product worth using. Most of these companies have laid off their useful skilled developers in favor of people with a "degree" from a "university" that only know how to copy-paste from Stack Overflow.

 

[az431]

I wonder if it's occurred to any of these fools that their revenue is ill-gotten in the first place. They took advantage of weak security and policies and now they think this is just normal. It's time to reset the baseline. No more free rides at the expense of privacy.

While I disagree with their policies, classifying their revenue as “ill-gotten” is absurd. There is nothing illegal about relying on ad revenue as a business model, and nothing “weak” about their security (seems like you don’t know even what the word means).

Plenty of businesses relied primarily on ad revenue before the internet even existed, and even Apple relies on ad revenue for some of their offerings (e.g., Apple News).

 

[az431]

I imagine it's been very profitable, and not just for the ad revenue. I'm sure they have been selling their users out to anyone willing to offer any money for the data. It was to be too tempting. Legislation should have been created and passed decades ago to protect users, but money is speech in DC, and the states, and money speaks VERY LOUDLY, tragically...

You’re “sure“ of that? Based on what? There is zero evidence (i.e., facts) that Snapchat sold user data to anyone.

 

[kc9hzn]

That requires effort to create a product worth using. Most of these companies have laid off their useful skilled developers in favor of people with a "degree" from a "university" that only know how to copy-paste from Stack Overflow.

Now, copy-paste from Stack Overflow does have its uses, if you can THINK about your problem and understand why the solution from SO works in your case. But yes, I’ve dealt with developers who seem to be expect to be told what every parameter of a function is, even though it’s a function from their product and not mine. So there’s some truth to that.

 

[PinkyMacGodess]

You’re “sure“ of that? Based on what? There is zero evidence (i.e., facts) that Snapchat sold user data to anyone.

Well considering they basically admitted they will be 'making' less money, I think they did, and do.

And why not? Their users have given them so much valuable data that has a market, and it's just bits and bytes that other people want to pay them to get. My point was that it's too easy for a corporation that is sitting on tons of data (Facebook) to sell out their users. They have a pot of gold, just sitting there, ready to be converted into corporate jets, office renovations, bonuses, perks, obscene spending. And they have gotten addicted to the fast money of sellingg out their users/customers. SHOW ME THE MONEY!!!

 

[dogslobber]

Let them die then as the business model isn't sustainable.

 

[agffth]

I'm confused on all the companies naming Apple directly as the problem with this new feature. Why not blame the millions..... and millions of The Rock's fans.. (sorry got carried away there) that are going to opt of tracking. It's still a choice for the user to make. They ultimately are the ones saying NO to tracking, not Apple. So place blame on your users if you want to blame someone. But I guess a full page ad blaming your users wouldn't be good PR, even if it was more accurate.