Twitter expects iOS 14 privacy changes to have 'modest impact' on revenue

Facebook has been far more pessimistic about the move…

What you need to know

  • Twitter has told investors iOS 14 privacy changes will have a “modest” impact on its revenue.

Twitter has told investors that new iOS 14 privacy measures will have a “modest” impact on its revenue.

As reported by CNBC:

Looking ahead, Twitter said it expects revenue to grow faster than expenses in 2021, assuming the pandemic continues to improve and taking into account an expected “modest impact” from Apple’s upcoming privacy changes to iOS 14. However, the company warned it expects headcount growth of more than 20% this year, with overall expenses increasing more than 25%.

It comes after the company reported its earnings for Q4, beating analyst expectations for earnings and revenue but falling short on growth.

Apple’s new App Tracking Transparency measures were introduced properly in last week’s betas and will become mandatory in public versions of the software from the spring. Apple will give users the option to opt-out of tracking across multiple apps and devices using an IDFA identifier, a key technology at the heart of many advertising businesses like Twitter and Facebook.

Facebook has repeatedly warned the move could have catastrophic effects on its ad revenue and on small businesses. Back in August it stated:

We expect these changes will disproportionately affect Audience Network given its heavy dependence on app advertising. Like all ad networks on iOS 14, advertisers ability to accurately target and measure their campaigns on Audience Network will be impacted, and as a result publishers should expect their ability to effectively monetize on Audience Network to decrease. Ultimately, despite our best efforts, Apple’s updates may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14.

Snapchat has also warned about the impact the changes could have but has stated that Apple “is trying to do the right thing for customers” and that it supports the move.

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