Bloody ‘Gypsy’ in Silicon Valley: 1 policy change blew away $ 16 billion of Facebook, Twitter, YouTube and Snap, no one could protest
Recently, Business Insider reported that Apple’s privacy policy change will continue to affect the revenue of many other tech giants, from Meta (Facebook’s parent company), YouTube, Snap to Twitter. Even this newspaper estimates it could wipe out a total of about 16 billion USD in revenue of these companies this year.
Introduced on April 26, 2021, a new Apple update has forced app developers to ask for permission before tracking users on apps/websites. Due to the disapproval of large numbers of users, advertisers and technology platforms have lost a powerful tool for generating revenue. The change forces many advertisers to reassess their marketing efforts and shift spending to channels that are less dependent on Apple.
New analysis from data management company Lotame estimates that Meta will continue to be heavily impacted by Apple’s privacy changes. Lotame estimates Meta could lose $12.8 billion in revenue in 2022.
Meta, like many other tech giants, has been actively working on creating new privacy-focused optimization and measurement tools to mitigate the impact of Apple’s policy update. Of course, it will take time for advertisers to get used to and catch up with this new tool.
Snap, which owns the mobile messaging app Snapchat, is also expected to suffer due to Apple’s change. Lotame estimates Snap will lose about $546 million in revenue this year.
Earlier this month, the company said its first quarter was “more challenging than we expected,” reflecting the continued impact of Apple’s changes and inflation on advertisers. Snap’s revenue jumped 38% to $1.06 billion, down from the $1.07 billion analysts previously estimated. Snap also reported a net loss of $359.6 million.
Similar to last quarter, Snap senior executives say it will take time before advertisers adapt and trust the company’s new measurement and targeting tools.
Meanwhile, Alphabet – the parent company of Google, owns its own giant advertising engine, with tons of data about the number of users and the advertising products associated with search results. The giant’s Android operating system is still running smoothly and has even reaped the benefits of advertisers diverting away from targeting iOS users.
Last year, however, Alphabet said that Apple users’ disapproval of tracking apps had a “modest impact” on YouTube’s revenue. Lotame estimates it will cost YouTube $2.2 billion, or 6.5% of revenue, by 2022.
As for Twitter, the company also said the change to Apple’s privacy policy has had a “modest” impact and will continue into the early months of 2022. Lotame estimates that Apple’s privacy update Apple will lose 323 million USD in revenue of Twitter in 2022.
Experts predict that Apple could disrupt advertising even further by beefing up its privacy tools. In addition to this factor, other tech giants are also likely to be affected by supply chain disruptions and a number of other macroeconomic events.
On the other hand, they are also relying heavily on e-commerce as a way to sell entirely within their own platform without relying on third parties for measurement.
According to the Financial Times, Lotame did a similar analysis last October and estimated that Meta, YouTube, Snap, and Twitter lost a combined $9.85 billion in revenue due to Apple’s privacy changes in the second half. year 2021.
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