On the balance sheets of other companies, the effect of Apple’s privacy change in April is beginning to unfold, and it shows the great power that Apple is using on companies that are not related to consumer electronics.
In April, Apple launched an update for iPhones with a new popup asking users whether they want to allow apps on their phones to target the user for ads. IPhone owners can easily get out by pressing a button labeled “Ask Do Not Track.”
Six months later, it appears that most iPhone users are out, and the feature, called Tracking Tracking App (ATT), is now exposing the challenges to companies from Snap to Facebook to Peloton.
The secret feature has placed devices behind the scenes of many mobile ads, especially those that confirm whether a purchase or download has been made.
Meta, the parent company of Facebook, warned last month that affiliate marketing has hit a “significant mass” and made its ads less effective in targeting potential customers. Facebook said its revenue would have grown steadily in the September quarter not for Apple’s advertising changes. Instead, it stays flat.
The Snap stock was hammered last month after it came under fire over sales, which the company blamed on Apple’s privacy changes. Snap CEO Evan Spiegel said the secret feature continues to pose risks to the company’s quarterly earnings, and the company says holiday quarter sales will be around $ 1.18 billion – essentially lower $ 1.36 billion in Wall Street sales are expected in the industry. clock.
Peloton, which is an advertiser and does not sell ads, said last month that an Apple privacy feature was hurting user development.