Google-owner Alphabet and Snapchat-parent Snap posted lackluster first-quarter results as the effect of a privacy change from Apple continues to squeeze big tech — signs that Meta is set to suffer a similar fate.
Analysts also expect the privacy change to have dragged down on Facebook and Instagram-owner Meta’s first-quarter ad sales. Meta is due to post its earnings after markets close on Wednesday. Twitter, also affected by the update, is set to report earnings on April 28.
By one count, Apple’s privacy changes are expected to dent Meta, Google’s YouTube, Snap, and Twitter’s revenue by almost $16 billion in total this year, according to analysis from data management company Lotame, which was shared exclusively with Insider earlier this month.
Introduced in April 2021 and known as App Tracking Transparency, Apple’s update forced app developers to ask permission from users before being able to track them across other apps and websites. With the majority of users opting not to be tracked, tech platforms and advertisers have less visibility over the exact audiences they are targeting and whether their ad campaigns are working.
I don’t care much for Tim Cook, but App Tracking Transparency is putting the screws to all the right data hoovers.