Snap tells investors Apple’s opt-in ad tracking privacy measure presents ‘risk’ to advertiser demand

With Apple’s upcoming iOS 14 privacy changes looming, Snap warned investors Thursday that they could damage Snap’s ad business (via.).

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

Granting the permission would allow developers to access the random advertising identifier, known as an Advertiser Identifier (IDFA), on the user’s device for specific advertising purposes or to measure the effectiveness of their campaigns.

According to Snap, the creators of Snapchat, any changes to iOS are “generally disruptive” and have an uncertain outcome, and planned IDFA changes could present a “risk” to demand from advertisers. However, the company added that it was unclear how that could affect the business in the long term.

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 financially affect small businesses.

But during an earnings call with analysts, Snap’s chief commercial officer Jeremi Gorman reportedly took a different tone, saying that Snap shares Apple’s philosophy on protecting user privacy.

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

During the earnings call, Snap revealed that user and revenue growth beat analyst estimates for the fourth quarter. SnapChat made the biggest gains outside of the US and Europe, growing 55% in daily active users. Revenue generated primarily from advertising sales grew 62% to $ 911 million, easily beating the Wall Street consensus estimate of $ 857.4 million, it reports.

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