Snap blames Apple’s privacy update for Q3 earnings slump

Snap Inc’s financial results for the third quarter of 2021 is a mix of good and bad news.

While the Snapchat parent company crossed $1B in earnings for the first time and doubled submissions to Spotlight, its answer to TikTok, the social media app missed earning estimates by $3 million and Apple’s privacy update earlier this year (2021) plays a major part in it.

“Our advertising business was disrupted by changes to iOS ad tracking that were broadly rolled out by Apple in June and July. While we anticipated some degree of business disruption, the new Apple provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” said Evan Spiegel, chief executive officer and CEO, Snap Inc.

With the release of iOS 14.5 update and the eagerly awaited App Tracking Transparency (ATT) feature, you, the user, gets to decide which apps can track you and which ones can’t. It is what the ATT is all about.

Photo by Souvik Banerjee on Unsplash