Snapchat Says iOS 14’s App Tracking Feature Presents Uncertain Future

BY Rajesh Pandey

Published 5 Feb 2021

After Facebook, it is now Snapchat that has voiced concerns about Apple’s upcoming App Tracking Transparency feature. The company has warned investors of its revenues being affected in the coming quarters due to the launch of the app tracking feature. Unlike Facebook though, Snap has not come down heavily on Apple for this feature. It is only worried about the impact this change will have on its revenues.

Snap’s CEO Derek Andersen said that the App Tracking feature could “present another risk of interruption to demand.” He did note that the long-term impact of these changes is unclear for now and they will only be clear a few months after the feature goes live.

Apple is expected to debut the App Tracking Transparency feature with the release of the iOS 14.5 update in March. The feature will lead to developers asking users for their permissions before they can track them across devices using their advertising identifier. There’s a risk of users not granting apps this access which could end up hurting their ad revenues in a big way. Facebook called this change devastating for small businesses, and it has even issued full-page ads criticizing Apple for this.

Snap’s Chief Business Officer Jeremi Gorman said during the investors’ call that the company has been working with Apple for this change. It is also informing its advertisers about this change while also improving its data tools to provide more metrics and data to advertisers.

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

Unity Software whose engine powers hundreds of iOS games also noted that the app tracking feature could affect the way game developers get new customers. It expects its revenues to reduce by $30 million in 2021 due to the IDFA changes.

[Via CNBC]