Digital Ad Snap, Pinterest Soar Past Tech Giant Meta

Snap and Pinterest reported financial results that showed how their smaller size and unique advertising base allowed them to avoid the blow of Apple’s decision to require apps to ask iOS users for permission to collect data.

On Thursday, Facebook owner Meta Platforms had more than $200 billion vaporized a day after it blamed Apple’s changes for impacting the company’s fourth-quarter results. While shares of Snap and Pinterest were initially pulled by Meta’s report, their shares catapulted 55% and 20%, respectively, on Thursday after demonstrating ad revenue strength.

Apple’s data protection update, called App Tracking Transparency, launched in April on its iOS devices and enabled users to block apps from tracking activity and data usage.

According to Snap, by the end of the fourth quarter, many of its advertisers had adopted a tool from Apple to measure ad effectiveness. Advertisers, who account for 75% of sales in its business geared toward driving sales as well as other customer actions from ads, had begun using another Snap product to measure the results of their ads.

This has helped Snap’s advertising business bounce back from Apple’s changes “quicker than we anticipated,” said Snap Chief Financial Officer (CFO) Derek Andersen.

In addition, Snap is likely to have benefited from the fact that most of its advertisers are large brands with marketing resources that allow them to adapt quickly to changes in the industry. Meta’s advertisers, however, are predominantly small to medium-sized businesses that cannot adapt so quickly, said LightShed Partners analyst Rich Greenfield.

Meanwhile, digital pinboard firm Pinterest is investing in video features and creator-led content to increase engagement and advertising revenue.

Todd Morgenfeld, Pinterest’s CFO, said in an interview that the company had not suffered much of an impact from Apple’s changes, but could do so in the future.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

ITW in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

More Best of The Web