- 1 hour ago
- Medhi Naitmazi
-
React
The Bumble dating app took advantage of its filing on Friday to warn investors that Apple’s continued efforts to improve user privacy could hurt its long-term results. This is particularly the case with the agreement of advertising tracking.
Publicity
Bumble: in the same boat as Facebook?
Bumble filed its initial public offering (IPO) with the SEC – Securities and Exchange Commission – of the United States on Friday. We discover part of the plans of the dating application which is about to sell shares to the public for the first time. In the dossier, which includes lists of things that could pose a risk to the company’s future existence, Bumble mentions Apple Advertising ID (IDFA) and changes that will make it more difficult to use this value to push advertising to users with iOS 14.4.
IDFA is a string of characters used to denote a specific user’s iPhone, which can be used by advertisers to track a user and deliver more personalized and targeted advertising. As part of Apple’s privacy expansion, the company is asking users to allow an app to track them on third-party apps and websites. IDFA appeared in September 2012.
Although the feature has been delayed to give developers and advertisers more time to prepare, it has started to appear in betas for iOS 14.4, which means it could be included in a public update. in January or February.
Giving the option to enable or disable tracking increases the chances that the user will deny it, preventing the app and its third-party partners from tracking the latter with IDFA. In the Bumble IPO document, the company fears this change around the IDFA.
Tinder’s competitor anticipates that the number of users who will accept the tracking will be between 0% and 20%, the vast majority opting out. For Bumble, this would make it more difficult for advertisers to “accurately target and measure their ad campaigns at the user level”, and could result in an “increase in cost per signup” for most applications.
© Bumble Inc.
For the year 2019, Bumble achieved ad spend of $ 130.4 million. If the cost per acquisition increases as expected slightly each year, Apple’s privacy policy could increase the app’s annual marketing cost or, for the same amount, reduce its effectiveness by attracting fewer new users.
The change also applies to Bumble’s income, but on a lesser level. The bulk of its revenue comes from subscriptions and in-app purchases, with the remaining portion coming from ads.
While Bumble admits that it has other methods of tracking users, such as those who link their Facebook profiles to their account, there is no guarantee that they will be able to do this correctly.
The IPO also mentions Apple about other fairly common issues, such as changing App Store terms, outages, and payment fees.
Bumble is the latest company to anticipate issues with Apple following the introduction of its new privacy features in iOS 14.
Apple’s biggest critic on the matter is Facebook, which launched a comprehensive campaign against the feature, but ultimately admitted it had no choice but to comply with the change.
Facebook estimated that it would see a drop in ad revenue of up to 60% once the change is implemented.
Publicity
Download the free app Bumble – Dating and Friends
–
