Apple’s App Tracking Transparency bites Snap’s ads business, shares drop 25% as revenue fall short

Snap on Thursday fell short of Wall Street estimates for quarterly revenue as the owner of photo messaging app Snapchat said Apple’s App Tracking Transparency framework to protect user privacy hurt Snap’s ability to target and measure its digital advertising.

Sheila Dang for Reuters:

Shares of Snap dropped 25% in trading after the bell.
The Santa Monica, California-based company said that issue was compounded by global supply chain disruptions and labor shortages, which caused companies to pull back on their advertising spending.
Snap said that while the Apple privacy updates, which prevent digital advertisers from tracking iPhone users without their consent, were expected to hurt third quarter results, an ad measurement tool provided by Apple “did not scale as we expected.”
Snap said it expects the Apple privacy changes and global supply chain disruptions to linger through the fourth quarter.

MacDailyNews Take: Ad revenue falling short? Welcome to the club, Snap!
Users should have full control of whether they are tracked across apps or, for that matter, tracked at all.
Privacy means people know what they’re signing up for, in plain English, and repeatedly. I’m an optimist; I believe people are smart, and some people want to share more data than other people do. Ask them. Ask them every time. Make them tell you to stop asking them if they get tired of your asking them. Let them know precisely what you’re going to do with your data. — Steve Jobs
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