Snap CEO Evan Spiegel supports Apple’s iPhone privacy change, claiming it is good for consumers.
In an interview with CNBC, Snap CEO Evan Spiegel admitted that Apple’s impending privacy changes will prove to be disruptive as far as advertising is concerned, however, claimed it will ultimately benefit the consumers. It is a stark contrast to the stance Facebook chief executive Mark Zuckerberg took last week.
“We feel like we’re well prepared for these changes and frankly because these changes are in line with our privacy philosophy, we’ve never allowed device-specific targeting, for example, and we’ve always taken a very protective stance when it comes to our users’ data,” Spiegel said in a “Squawk Alley” interview. “We generally view this as a good thing overall for consumers, even if it’s a little disruptive for advertisers in the near term,” he added.
App developers, as well as industry players usually utilize Apple’s identifier for advertisers (IDFA) when it comes to targeting mobile ads and measuring their effectiveness. IDFA refers to a unique string of letters and numbers on every Apple device.
As soon as a privacy update rolls out, app developers will be forced to ask permission to access a user’s IDFA through a prompt. A considerable number of users are likely to say no, minimizing the effectiveness of targeted advertising.
Facebook also hosts a massive online advertising business, receiving a significant amount of its revenue from ads. The social media giant has repeatedly criticized Apple for the upcoming change since it was announced in June, claiming that it will hurt small businesses.
“Apple may say they’re doing this to help people but the moves clearly track their competitor interests,” Zuckerberg said during Facebook’s earnings call last week.“We and others are going to be up against this for the foreseeable future.”
It is worth mentioning here that Snap is concerned as well. During its Q4 earnings report on Thursday, the company warned its investors that Apple’s change would pose a risk of interruption to demand once they are implemented. “The reason that we’re highlighting some of the policy changes Apple is making is that they will impact our ability to effectively measure and optimize advertising outside of Snapchat,” Spiegel explained.
Snap has been working with the Cupertino-based handset maker to prepare for the changes and plans to provide advertisers with more opportunities to provide their products and services to Snap users directly via Snapchat.
“The reality is we admire Apple, and we believe that they are trying to do the right thing for their customers,” Snap chief business officer Jeremi Gorman said on the company’s earnings call. “Their focus on protecting privacy is aligned with our values and the way we’ve built our business from the very beginning. Overall, we feel really well prepared for these changes, but changes to this ecosystem are usually disruptive and the outcome is uncertain.”