Snap CEO Says Apple’s App Tracking Transparency is the Cause Behind their Revenue Drop

Apple’s privacy changes allow users the freedom to decide if they wish to be tracked by third-party apps.

While many companies initially allowed the App Tracking Transparency Policy, Snap was not so lucky.

According to the CEO of the company, revenue has suffered a substantial drop due to Cupertino’s iOS privacy policies on its ad tracking business.

Snap shares’ drop due to app tracking transparency

(Photo by Neilson Barnard/Getty Images Snap Inc.

LOS ANGELES, CALIFORNIA – APRIL 04: Snap Inc. At the Snap Partner Summit at The Lot Studios, April 4, 2019, in West Hollywood, California, Evan Spiegel, CEO and co-founder, discussed the future of Snapchat’s camera.

Snap claimed that the revenue of the company, based on a report from Q3 2021 was less than $1 million, according to a 9to5Mac article. Snap was anticipating that the revenue would be more than $3 million.

Evan Spiegel, CEO of the camera company said that Apple’s iOS ad tracking modifications caused the company’s revenue to plummet. Snap’s mobile advertising business was disrupted by the privacy policy, according to reports.

Spiegel stated that changes to iOS ad tracking were disruptive to our advertising business. This was revealed during a meeting of analysts.

The Snap CEO also pointed out that Apple privacy changes didn’t “scale” as they had hoped. Their ad partners have had difficulty managing targeted ads for iOs users.

Snap reported a significant rise in daily users despite the decline in revenue. In Q2 2021, the page was visited by 13 million people who were active subscribers.

Snap currently has 306 million active users per day, which is a new record. Spiegel has seen a decrease in revenue use.

According to Engadget, Spiegel stated that the revenue slump was a “frustrating setback”. He stressed that Apple’s iOS privacy updates are important for the company’s overall system.

Apple Search Ads Get Benefits from App Tracking Transparency

According to Apple Insider’s report, sponsored text ads appear to be benefiting from Cupertino’s privacy changes for this year.

App Tracking Transparency was introduced to Apple’s Search Ads, which saw a significant increase in usage. 58% of the iPhone app downloads are responsible. The usage was only 17% last year.

Apple could also earn $5 billion just from advertising, thanks to the push for this technology. This amount is equivalent to Apple’s revenue in three years.

See also: Snapchat Half-Swipe – How the Latest Update Impacts Half – Swiping among Users

Transparency in App Tracking Impacts Facebook and Twitter

We reported in May that Twitter had launched the Ad Tracking feature. According to Twitter, the app tracking feature would display relevant ads that match your preferences. You can also choose whether you wish to allow it on your app.

Facebook, however, has a different approach to the feature. According to the COO of the company, App Tracking is in the midst of massive preparations.

A representative from Facebook explained that Facebook would have to find a way to inform users that its ads are user-friendly.

Similar Article: iOS 14.5 to Receive Controversial Security Updates: Soon, App Tracking Transparency will be Available

(Photo courtesy of Neilson Barnard/Getty Images Snap Inc.) LOS ANGELES CALIFORNIA – APRIL 4, 2019: Snap Inc. At the Snap Partner Summit at The Lot Studios, April 4, 2019, in West Hollywood, California, Evan Spiegel, CEO and co-founder, discussed the future of Snapchat’s camera.