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

Snapchat 1With 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.

Related Forum: iOS 14

Top Rated Comments

warp9 Avatar
20 months ago
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.
Score: 48 Votes (Like | Disagree)
PlainviewX Avatar
20 months ago
I really don't care. Charge monthly for your app. That way, people who really want to use it, will use it.
Score: 20 Votes (Like | Disagree)
farewelwilliams Avatar
20 months ago
people still use snapchat?
Score: 16 Votes (Like | Disagree)
Captain Trips Avatar
20 months ago

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.
Score: 14 Votes (Like | Disagree)
Gherkin Avatar
20 months ago

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).
Score: 12 Votes (Like | Disagree)
agffth Avatar
20 months ago
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.
Score: 10 Votes (Like | Disagree)

Related Stories

craig wwdc 2021 privacy

Apple's Privacy Features Have Cost Social Media Companies Nearly $10 Billion in Revenue

Monday November 1, 2021 4:42 am PDT by
As a result of its privacy features, Apple has cost social media companies including Meta, formerly known as Facebook, Twitter, Snapchat, and YouTube, nearly $10 billion in revenue in the second half of 2021, according to an investigation by the Financial Times. The Financial Times found that most users have opted out of tracking using Apple's App Tracking Transparency (ATT) framework, a...
facebook

Facebook Crowned 'Worst Company of 2021' by New Survey

Sunday December 19, 2021 3:47 am PST by
Facebook, otherwise known as Meta, has been crowned the worst company of the year, following a turbulent 12 months of controversies, public backlash, and an eventual entire rebrand of the social media giant, according to a survey conducted by Yahoo Finance. Yahoo Finance every year crowns the best company of the year, with Microsoft taking the top spot for 2021. This year, however, Yahoo...
tim cook mark zuckerberg

Apple's Privacy Rules to Blame for Facebook's Lower Than Expected Quarterly Growth, Says Zuckerberg

Tuesday October 26, 2021 3:46 am PDT by
Apple's privacy rules are "negatively affecting" Facebook, and its business, Facebook CEO Mark Zuckerberg claimed during its most recent earnings call. As a quick refresher, starting with iOS 14.5 and all newer versions of iOS and iPadOS, Apple requires that apps ask for users' permission to track them across other apps and websites. Under the App Tracking Transparency (ATT) framework, the...
app store blue banner

Apple Defends Its Ads for Third-Party Apps, Says It Regularly Communicates With Developers and Has Been Running Them for Five Years

Monday November 15, 2021 10:11 am PST by
Following allegations that Apple secretively buys ads for subscription-based apps to collect more commission, Apple has now said that this is a mischaracterization and developers are fully aware of the ads it runs on their behalf. Earlier today, we reported on an article by Forbes which claimed that the company "secretly" or "quietly" places ads for subscription-based apps without their...
Facebook Feature

Facebook Reports Record Ad Revenue for Q2 2021, Despite Apple's iOS Privacy Changes

Thursday July 29, 2021 2:31 am PDT by
Undeterred by Apple's recent anti-tracking privacy changes, Facebook continues to rake in billions in advertising revenue, as evidenced by its latest fiscal 2021 second quarter results announced Wednesday. On the company's Q2 earnings call, the social network revealed it had accumulated $28 billion in ad revenue, representing a 56% year-on-year increase. That saw Facebook more than double...
apple privacy

More Users Trust Amazon and Google to Handle Their Personal User Data Than Apple, Survey Suggests

Wednesday December 22, 2021 7:29 am PST by
According to a new survey, more users trust Amazon and Google to handle their personal user data and internet browsing activity than Apple, while users overwhelmingly distrust Facebook, TikTok, and Instagram. The survey conducted by The Washington Post sampled over 1,000 internet users in the U.S. about how much they trust Facebook, TikTok, Instagram, WhatsApp, YouTube, Google, Microsoft,...
generic tracking prompt green

Report: iOS Users Who Opt-Out of App Tracking Continue to Be Tracked by Facebook and Snapchat

Wednesday December 8, 2021 5:50 am PST by
"Loose" interpretations of Apple's privacy policies allow apps such as Facebook and Snapchat to continue tracking users for targeted advertising even when they have asked to not be tracked, The Financial Times reports. In May, Apple launched its App Tracking Transparency feature that allows users to opt-out of being tracked across apps and websites for advertising purposes. Seven months...
nba tracking prompt duo

Apple Details Ways Advertisers Can Measure the Impact of Ads Without Tracking Users Ahead of iOS 14.5 Launch

Wednesday April 7, 2021 6:00 am PDT by
Starting with iOS 14.5, iPadOS 14.5, and tvOS 14.5, Apple will be requiring apps to receive a user's permission to track their activity for targeted advertising purposes, as part of a privacy measure known as App Tracking Transparency. To help advertisers adjust to this change, Apple today shared a new version of its "A Day in the Life of your Data" document with details on two...

Popular Stories

iPhone 14 Pro Purple Rear Flat MacRumors Exclusive

iPhone 14 Pro Predicted to Start With Increased 256GB Storage Alongside Rumored Price Increase

Wednesday August 10, 2022 11:14 am PDT by
Earlier today, analyst Ming-Chi Kuo claimed iPhone 14 Pro models will be more expensive than iPhone 13 Pro models. Kuo did not reveal exact pricing, but he said that the average selling price of all four iPhone 14 models will increase by about 15% overall. While higher prices would be disappointing for customers, it is possible the iPhone 14 Pro and iPhone 14 Pro Max will offer increased...
iPhone 14 Pro Lineup Feature Silver

Kuo: Apple to Increase Prices of iPhone 14 Pro Models

Wednesday August 10, 2022 8:22 am PDT by
Apple plans to increase the prices of iPhone 14 Pro models compared to iPhone 13 Pro models, according to analyst Ming-Chi Kuo. Kuo did not reveal exact pricing for the iPhone 14 Pro models. However, in a tweet today, he estimated that the average selling price of the iPhone 14 lineup as a whole will increase by about 15% compared to the iPhone 13 lineup. In the United States, the iPhone...
iPhone 14 Pro Purple Front and Back MacRumors Exclusive feature

iPhone 14 Is Just a Few Weeks Away: Three Tips to Prepare for the New iPhone

Wednesday August 10, 2022 4:08 am PDT by
The launch of the new iPhone 14 is just a few weeks away, meaning millions of iPhone customers will soon upgrade their existing iPhone or perhaps get an iPhone for the first time. Exclusive MacRumors iPhone 14 Pro renders by graphic designer Ian Zelbo Whether upgrading from an older model or this is your first iPhone, we've rounded up a few tips to help you prepare for the next flagship...
battery percentage ios 16

Here's Why the iPhone Battery Status Icon in iOS 16 Is So Controversial

Wednesday August 10, 2022 4:34 am PDT by
In the latest iOS 16 beta, Apple has updated the status bar battery icon on iPhones with Face ID to display the exact percentage remaining rather than just a visual representation of battery level, and while the change has been largely welcomed, some users are unhappy with the way it has been implemented. In iOS 15 and earlier, battery percent has not been present on iPhones that have...
Apple Watch Body Temperature Finished

'High-Accuracy' Apple Watch Temperature Sensor Revealed by Patent Filing Just Weeks Before Series 8 Unveiling

Wednesday August 10, 2022 5:39 am PDT by
Apple has been granted a patent for a temperature sensor suitable for the Apple Watch, just weeks before the company is expected to unveil the Apple Watch Series 8 with body temperature sensing capabilities. The newly granted patent, spotted by MyHealthyApple, was filed with the United States Patent and Trademark Office and is titled "Temperature gradient sensing in electronic devices."...