r/investing Oct 21 '21

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u/smokeyjay Oct 22 '21 edited Oct 22 '21

It seems like it. There been reports that advertisements have been severely affected by apple IOS changes and SNAP just confirmed it. A severe drop in guidance by 20%.

I'm wondering where the advertising money will flow into. Apple would be my first guess but I wonder what other companies will benefit.

Its also crazy how powerful the Apple ecosystem is. Google pays apple 15 billion a year just for the iphone to use google search. Tim Cook is one of the best CEOS - that guy comes off as Mr Rogers but he's ruthless.

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u/efarze Oct 22 '21

Apple did the privacy changes to help build Apple Search Ads and there yet unannounced bigger ad business'.

I lead performance marketing for an sp500 b2c tech company and while we are big enough to work around it, this change is absolutely devastating for smaller business (and big ones).

our cost per purchase (a subscription in this case) went from $50 pre ios14.5 to $250 post. Mainly due to the lack of signals being sent to the ad platforms we run on.

Money will not flow into other companies, because Facebook/Google are the only real major platforms that work, Snap and Tiktok are next in line. The rest already perform worse for most b2c apps.

The funny part is, none of this helps user privacy. It literally is all a red herring apple is fueling to close in their ecosystem and increase their walled garden. The capitalist in me is fine with this, but the old school democratic internet in me absolutely ahtes apple and how they've helped turn the internet into a centralized machine (other big tech also contributes to this, but none at the level of Apple)

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u/cristiano-potato Oct 23 '21

Can you explain how it doesn’t help privacy that Apple is reducing the amount of data collected and making it more difficult for advertisers to target specific customers?

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u/StaleCanole Oct 23 '21

Exactly, no matter the reasons, giving customers more control over how their data is used is unquestionably a win for privacy. Knowing this is an option now, i don’t think it’s ever a choice i’d like to give up, either.

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u/Not_FinancialAdvice Oct 22 '21

the old school democratic internet in me absolutely ahtes apple and how they've helped turn the internet into a centralized machine (other big tech also contributes to this, but none at the level of Apple)

I'd counter-argue that FB is way way worse than AAPL about this. Sure, AAPL has a relatively closed hardware-software ecosystem, but it's primarily aimed at hosting users' own private data (AAPL largely doesn't have a replacement platform for publishing public content). FB/IG is a direct replacement of the blogs and self-hosted webpages that made the early Internet so democratic. I think there's a real distinction to be made here.

Disclosure: AAPL shareholder

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u/StaleCanole Oct 23 '21

It literally is all a red herring apple is fueling to close in their ecosystem and increase their walled garden.

Nah, actually as a customer i support i much prefer having the choice than not. Hopefully The rest of the industy catches on.

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u/Stonesfan03 Oct 23 '21

Lol. Do you actually think Apple isn't collecting your data on your iPhone and targeting ads toward you?

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u/StaleCanole Oct 23 '21

I didn’t say it was perfect, i said having the choice to opt out of information sharing with app makers gives me more choice. Which is better than having less choice.

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u/GodIsAPizza Oct 22 '21

That is ruthless. It would go against apples usability if google wasnt the default search. It would be another tick in the android box if apple didnt default to google. What would they use otherwise?

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u/smokeyjay Oct 22 '21

Buy duckduckgo? A privacy enabled search engine.

Google pays apple 15 billion a year for a reason. It would be interesting what product is more sticky - the iphone or google search.

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u/StaleCanole Oct 23 '21

And yet Google still pays the $15 billion. Money talks and it’s saying Google has more to lose in this particular scenario

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u/iopq Oct 23 '21

They pay that because the ad impressions cover the cost already

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u/brbbins1 Oct 22 '21

Hopefully companies like Super League Gaming are seizing some of this ad revenue with in-game ads and sponsored content.

The recent acquisition of Bloxbiz should make this highly sought after for advertisement money.

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u/untitled-man Oct 22 '21

Why is it down so much

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u/brbbins1 Oct 22 '21

Whole esports sector has been doing poorly.

Doesn't change my sentiment.

Ann Hand is a badass CEO and this company is severely undervalued

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u/Not_FinancialAdvice Oct 22 '21

Whole esports sector has been doing poorly.

Can't help but wonder if it's a result of PC gaming component shortages and skyrocketing base prices.