Twitter, Facebook, Instagram logo displayed on iPhone screen.
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Shares of Facebook, Twitter, and other social media and digital advertising companies traded after hours after Snap reported missing third-quarter revenue forecasts as Apple’s iPhone privacy changes disrupted the advertising business. It is decreasing rapidly. Snap also warned that supply chain disruptions are curbing short-term spending on advertising as companies do not want to stimulate demand for out-of-stock products.
Facebook and Twitter fell by more than 6% and 5%, respectively, after business hours, while Pinterest fell just over 2% after business hours. (Pinterest also fell more than 2% during regular trading, following Wednesday’s report that PayPal is considering an acquisition.) Facebook and Twitter will report earnings next week.
Digital advertising companies taking advantage of customer data have also been affected. Trading Desk and Magnet each lost more than 5%, while Liveramp lost more than 3% after business hours.
Technology companies have long expressed concerns about privacy changes called ATT or App Tracking Transparency. It will ask if the user will opt in for tracking. Critics say it is very difficult for advertisers to track the effectiveness of digital advertising.
SnapCEO said, “While some commercial upheaval was expected, Apple’s new measurement solution did not live up to expectations, making it more difficult for ad partners to measure and manage iOS ad campaigns.” Evan Spiegel said. His prepared remarks.
Spiegel also said supply chain disruptions and labor shortages dampened “short-term desires to generate additional customer demand through advertising” and that Snap provided weaker-than-analysts guidance in the fourth quarter. I warned that it became.
Facebook, Twitter and digital ad inventory drop sharply after Snap revenue
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