Snap Shares Slide as It Blames Apple’s Privacy Changes for Hurting Its Ad Business

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Snap said revenue rose 57% in the latest quarter, but it expects growth to slow due to Apple's privacy changes. Shares were down 27% in after-hours trading.

The new rules have made it difficult to test and measure advertising campaigns, so advertisers have scaled back on spending, according to Snap.

“While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our ad partners to measure and manage their ad campaigns for iOS,” Snap said.To resolve the problem, Snap said it is developing additional first-party tools to help its ad partners achieve their goals.

“This in turn reduces their short-term appetite to generate additional customer demand through advertising at a time when their businesses are already supply-constrained,” Snap said. During the quarter, Snap said Spotlight, a video-sharing tool it introduced last year to appeal to content creators, received twice as many submissions compared with the second quarter.

 

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