Snap says upcoming iOS 14 privacy feature presents risk to business

in iOS edited February 5
Snap on Thursday warned investors of potential revenue headwinds in the coming quarters as Apple prepares to flip the switch on a new iOS privacy feature, the same tool over which Facebook is reportedly preparing an antitrust lawsuit.

iPhone Privacy

Following the report of positive fourth quarter earnings, Snap CFO Derek Andersen warned investors that Apple's iOS 14 changes "present another risk of interruption to demand," reports CNBC.

"It is not clear yet what the longer term impact of those changes may be for the topline momentum of our business, and this may not be clear until several months or more after the changes are implemented," Andersen said.

Apple in an upcoming iOS update will roll out a new feature that requires developers to ask permission before accessing a user's Identifier for Advertiser (IDFA) tag. Snap, the parent company of ephemeral video sharing service Snapchat, relies on the ad tracking technology to serve users targeted paid content and expects the privacy feature to impact its bottom line.

App Tracking Transparency is slated to debut in early spring, Apple said last week.

Snap has been working with Apple in preparation of the change, according to chief business officer Jeremi Gorman. The company is also educating advertisers, investing in first-party data tools and intends to provide advertisers more opportunities to market products and services directly through Snapchat, the report said.

"The reality is we admire Apple, and we believe that they are trying to do the right thing for their customers," Gorman said. "Their focus on protecting privacy is aligned with our values and the way we've built our business from the very beginning."

That said, the executive cautioned that while Snap feels prepared for the feature rollout, changes to iOS are "usually disruptive and the outcome is uncertain."

Other companies have raised concerns over the coming launch of ATT, the loudest being Facebook. The social network protested the feature as early as last July, saying its business would be negatively impacted by automatically opting users out of IDFA tracking. After months of constant criticism that included full-page newspaper ads and outreach to business users, Facebook is reportedly readying an antitrust lawsuit to argue the issue in court.


  • Reply 1 of 16
    entropysentropys Posts: 3,105member
    "The reality is we admire Apple, and we believe that they are trying to do the right thing for their customers," Gorman said. "Their focus on protecting privacy is aligned with our values and the way we've built our business from the very beginning."
    If that was remotely true why is Snapchat selling details about its customers to others unknown? 
    In other words, just MBA weenie marketing BS.
  • Reply 2 of 16
     Snapchat, relies on the ad tracking technology to serve users targeted paid content and expects the privacy feature to impact its bottom line. ”

    Sucks to be you but I always clear my data anyway. 
    Plus sometimes use alternative browsers. 
  • Reply 3 of 16
    I see another app to be discontinued from the Apple App Store.

    GAWD, these crazies just love to spy on their users.  They have a screw loose.
  • Reply 4 of 16
    These companies are so idiotic.

    Their apps exist to accomplish a certain goal for customers. 

    They are not entitled to spy on us.

    If their business model depends on destroying my privacy, they don't need to be in business - or simply come up with an actual, viable business model that is not evil.

    Apple exposing what they do is not damaging anything. It's protecting its customers from nefarious companies that do shady things without us even knowing.

    Apple doing this kind of thing is one of the reasons people have flocked to them to begin with. 

    Snap needs to fold iff they don't wise up. Same with Facebook and same with Epic for that matter. 

    Open letter to these entities: We don't want you doing that. We want Apple to guard us against you. 





    Or simply go away.
    edited February 5 mike54rmusikantowjeffharrisDogpersonbyronlwatto_cobra
  • Reply 5 of 16
    mike54mike54 Posts: 465member
    I have no sympathy for this Snap app at all. An increasing amount of apps exist whose sole business model is targeted advertising and data collection so they can on-sell it to companies like Facebook.
    edited February 5 jeffharrisDogpersonwatto_cobra
  • Reply 6 of 16
    fred1fred1 Posts: 828member
    What the Snap and Facebook peeps fail to say in public is: “Of course even with this move by Apple, people still have the choice of letting apps like ours make loads of money by selling their personal data and preferences.”
  • Reply 7 of 16
    These businesses have fear because they'll no longer be able to service their personal data contracts to 3rd parties, but importantly those other 3rd parties won't be able to service them either.

    So they're losing a bit of what they collect, and a lot of what they correlate that with from data aggregators. 
  • Reply 8 of 16
    I wonder if people will be willing to pay for these services rather than sell their data. If you could choose to either pay a monthly fee to use Facebook versus selling your data to Facebook, what would you choose?
  • Reply 9 of 16
    JinTechJinTech Posts: 775member
    So basically Apple believe in users privacy. They are finally making it front and center and letting their users know what these developers are doing with their data, developers have an outcry over Apple essentially ratting them out and then threaten to sue Apple for loss of funds based on ad revenue from users data going down.

    I would be okay with all of these companies making money from my data if I got a cut of the pie. Hey you're making money from me? How about you give me a 10% slice and we'll call it even!
  • Reply 10 of 16
    Before this announcement, how many people knew that tracking users was even a part of Snap's business?
    That's the real problem: Companies are profiting from tracking users without their knowledge or consent.
    Screw those guys.
  • Reply 11 of 16
    OMG, protecting privacy becomes a one-company uphill battle...
  • Reply 12 of 16
    lkrupplkrupp Posts: 9,452member
    The Advertising industry must really be torqued off at Apple these days for lifting the rocks they hide under.
  • Reply 13 of 16
    He didn’t say anything bad. That’s his job to warn investors. There is a risk for sure, but they didn’t say it’s a bad thing.

    Unlike Zuckerberg, Snap CEO Spiegel says Apple’s iPhone privacy change is good for consumers

    You guys are also a bit too arrogant.

    By the way, I’m not using Snap but I don’t condemn someone who is using it.
  • Reply 14 of 16
    I would imagine free apps such as FaceBook, Snapchat, and Google apps will move towards a paid subscription model after 14.5 if their user tracking/data mining revenue is significantly impacted by Apple's privacy focused software. Would users pay for these services?
  • Reply 15 of 16
    The app's users are not the customers.... 
    The users are the product.
  • Reply 16 of 16
    This is the first time I’ve even heard of “Snap”. 

    Is that Snap as in Snapchat and Snapdrop?

    I use Snapdrop to share files with my wife’s work Surface Pro, but that’s it.
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