Social media has raised concerns that the changes will affect advertisers’ ability to reach customers with targeted ads.
Snap, the parent company of the defunct messaging app Snapchat, warned that Apple’s upcoming privacy update could make it harder to raise ad dollars, even as it reported fourth-quarter results that beat analysts’ expectations. The company also said that some advertisers had stopped campaigns in the first two weeks of January after the deadly riot at the US Capitol on January 6.
Chief Financial Officer Derek Andersen said the upcoming changes to Apple’s iOS 14 “will present another risk of demand disruption,” although he also noted that the long-term impact is unclear. Apple plans to roll out a new privacy feature in the first quarter that will require users to opt out of apps that collect their data from other companies’ apps and websites.
Apple said it is making changes to the popular mobile operating system to give users more control over their data. Social media, including Facebook, have raised concerns that the changes will affect advertisers’ ability to reach customers with targeted ads. Facebook said Apple’s changes are about “profit, not privacy” because if apps turned more to in-app purchases, the smartphone maker would get more money from fees. Snap, on the other hand, expressed support for Apple’s upcoming changes.
When it comes to some of the policy changes that Apple is letting you know, we really think of them as people of high integrity and are happy to see them making the right decision for their customers, said Snap CEO Evan Spiegel in a call. with analysts on Thursday.
Snap estimates that first-quarter revenue will be between $ 720 million and $ 740 million, more than previous expectations of $ 704.57 million. However, the company estimates that it will lose between $ 50 million and $ 70 million in Adjusted EBITDA (earnings before interest, taxes and amortization), worse than the $ 19.26 million earnings analysts expected.
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