Snap’s ads business is cratering, partly because of privacy changes by Apple, according to Business Insider. The Cupertino, California-based company has made it easier for users to opt out of ad-tracking, hurting revenue for firms like Snap.

​Snap stock plunged 11% today after the social media company posted it slowest rate of quarterly growth ever. The Snapchat parent’s fourth-quarter revenue of $1.3 billion was essentially flat from the year before and below analysts’ estimates of $1.31 billion. Snap recorded 373 million global daily active users versus estimates of 375.3 million. 

In an investor letter on Tuesday, Business Insider reports that the Snapchat owner forecast a bleak drop in revenue of up to 10% by the end of March as it faces a flailing digital ads market and the lasting effects of Apple’s privacy changes in 2021.

In late 2021, Apple ushered in changes to privacy settings dubbed Apple Tracking Transparency that made it harder for apps to track users, which is, of course, valuable to any service funded by ads, like Snapchat.

Starting with iOS 14.5, iPadOS 14.5, and tvOS 14.5, advertisers had to receive the user’s permission through the AppTrackingTransparency framework to track them or access their device’s advertising identifier. Tracking refers to the act of linking user or device data collected from your app with user or device data collected from other companies’ apps, websites, or offline properties for targeted advertising or advertising measurement purposes. Tracking also refers to sharing user or device data with data brokers.

Snapchat is an American multimedia instant messaging app and service developed by Snap Inc., originally Snapchat Inc. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before they become inaccessible to their recipients.

Article provided with permission from AppleWorld.Today