Snap shares collapse by a quarter after quarterly figures

Los Angeles (dpa) – The advertising business of the popular photo app Snapchat has been hit hard by Apple’s measures for more privacy on the iPhone.

Advertisers have a harder time measuring the success of their advertising campaigns, complained the operating company Snap after failed sales forecasts in the past quarter. Investors then began to flee the share: Snap lost a quarter of its value within minutes in after-hours US trading on Thursday.

Apple introduced the rule in the summer that app developers explicitly limit users Have to ask for permission if they want to track their behavior across different applications and services for promotional purposes. According to surveys, most users reject this, which is causing some previous advertising models to falter.

Snap’s advertising business

Snap has relied heavily on small ads in recent years Immediately encourage users to click – for example, advertising for apps that can be installed straight away. But after the introduction of the new iPhone rules, developers could no longer recognize, for example, whether a user already has their app, said Snap manager Jeremi Gorman. Nor could they measure how quickly users reacted to the ads and how long they viewed them. Alternative software tools provided by Apple have proven to be unreliable, criticized Gorman.

Snap’s advertising business is also being gripped from a second side: Various companies are causing bottlenecks in supply chains and on To create a job market. “In many cases, companies don’t have enough inventory or capacity to meet increased demand,” said Gorman. Accordingly, they have little interest in advertising their products during the usually buzzing Christmas business.

Both factors would have an impact on the current quarter, warned Snap. In the past quarter, Snap increased sales year-on-year by 57 percent to around $ 1. 067 billion dollars (920 Million Euro). On the market, however, more than 1.1 billion dollars were expected. The company missed the lower end of its own forecast of $ 1. 07 billion dollars by only three million dollars, as Snap boss Evan Spiegel emphasized. None of that helped: even after the management explained the share was still more than 21 percent in the red.

Spiegel nevertheless confirmed that Apple’s Measures are the right way from Snap’s point of view. “In the long run, these changes are really important to the health of the ecosystem.” Snap’s tools that were used to measure the effectiveness of ad campaigns were “blinded,” he said. “We definitely underestimated the consequences for our advertising partners,” admitted Spiegel.

The number of users active on Snapchat every day rose from 293 to (within three months). Millions. Bottom line, Snap posted a loss of just under 72 million dollars in the third quarter – a significant improvement compared to the loss of around 200 million dollars a year earlier

Investors assumed that Apple’s data protection measures will also affect competitors such as Facebook and Twitter and let their shares fall by more than four percent. Facebook has been criticizing the changes for a long time and has already had to admit that it provided its advertisers with incorrect data. The online network points out that small and medium-sized companies in particular would suffer from the restrictions. Apple always emphasized the criticism that the protection of privacy is a human right.

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