🍎Apple: Causing Pain for the Ads Community🍏

The push to protect consumer privacy has made advertising targeted audiences more challenging than ever. It now affects many spectrum of businesses that rely on ads on many social media platforms to garner sales.

🏑Scrambling for Alternatives🛹

Indeed, advertisers have traditionally depended on mobile ads to reach out to their consumers. This week, we will have a first-hand look at how Twitter, Alphabet and Facebook will be impacted as they report their September earnings result.

🪜A New Paradigm for Advertising📻

Apple’s move has caused profound complications for businesses. For example, targeted ads can still reach Android firms, but businesses are also keen to reach out to Apple’s customers. Moreover, companies are facing a difficult time ascertaining if an Apple user has seen their ads.

Some research showed that a small fraction of US consumers had opted in for tracking when offered a choice. The result is not a surprise given that there is little incentive for consumers to opt-in other than having received more targeted ads. It is reported that more than 80% of iOS devices had changed to a version that embedded more stringent ad standards.

🪤Ripple Effect Across Companies🧰

Snap, the social network, shocked Wall Street when it announced its result last Thursday that indicated a poorer outlook for the fourth quarter that is well short of expectation. While the company had blamed supply chain woes that deter companies from placing more ads, it had also conveyed the massive impact of Apple’s measures on their business.

This week earnings will shed more light on the resultant effects of Apple’s action, and Pika World will be reviewing them closely.

📱Facebook: To feel the Heat🕹

The stock was firmer after a mixed set of results. Net income hit $9.19 billion or $3.22 per share ahead of Wall Street’s estimate of $3.19 a share. However, revenue was slightly lower at $29.01 billion than the consensus of $29.49 billion.

Guidance is also softer than expected, which was around $31.05 billion to $34 billion, short of analysts estimate at $34.7 billion. This is attributed to a continuous uncertainty in the macroeconomic environment and the headwinds from Apple’s iOS changes.

Pika World believes that Facebook has some form of ability to weather the Apple iOS shock. Still, the company is facing more scrutiny of its business morals and ethics in the coming months.

📮What’s on the Menu Today?

At 10 pm, we will receive the CB Consumer Confidence for October, which we expect to stay elevated at 108.3.

New home sales data will be released, and it is expected to rise from 740K to 760K.

It is Oct 26, Tuesday, 7.05 am in Singapore and 7.05 pm in New York. It is an energy-packed week for earnings, and Pika World hopes all friends have a good week ahead!