Snapchat ads affected by changes at Apple
Snapchat ads affected by changes at Apple

After the owner of the photo messaging app Snapchat said Apple's privacy changes applied to iOS devices were affecting the company's ability to identify and measure its digital advertising, Snap shares fell 25%.

The Santa Monica-based California company makes most of its revenue from selling digital advertising through the app. The company said disruptions in the global supply chain and labor shortages had caused brands to cut back on advertising spending, exacerbating the problem.

The company was the first largest social media company to post earnings, and its performance has cast a shadow over Facebook and Twitter which will release third-quarter results next week.

Snapchat's performance also sent Facebook shares down 6%, Twitter 7%, and Alphabet 3%.

Apple's privacy update went viral in June, preventing digital advertisers from tracking iPhone users without their consent.

Snap CEO Evan Spiegel said Apple's new ad measurement tools are hampering the company's ability to measure advertising effectiveness, and have changed many of the ways advertisers do business over the decades.

The company added that it expects Apple's privacy changes and global supply chain disruptions to continue into the fourth quarter. When brands ramp up their marketing efforts during the holiday season, this is usually the most profitable time for social media companies.

Snapchat users reach 306 million


Many of the advertisers who advertise on Snapchat work in the beauty, fashion, and consumer goods industries. The company said the supply chain disruption has affected a wide range of advertisers in various industries and regions.

Revenue for the third quarter ended September 30 was $1.07 billion. As an indicator that advertisers and investors closely follow, the number of daily active users increased by 23% annually to 306 million.

The company's goal is to attract and retain users by creating new features, such as the ability to explore restaurants and shops using the map functionality. Or play virtual games with friends.

Net loss for the quarter was $72 million. For the fourth quarter, the company expects revenue between $1.16 and $1.2 billion. The number of daily active users ranges from 316 million to 318 million.



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