It’s been a good week for social media platforms. Snapchat revealed a 116 per cent YoY increase in revenue for Q2, while Twitter managed to grow its quarterly revenue 76 per cent to reach $US1.19 billion ($1.6 billion).
In a social media ecosystem that is largely dominated by Facebook-owned platforms, the strong results of Twitter and Snapchat should serve as an encouraging sign for the wider industry.
The results could also provide insight into the future of advertising on social media apps.
Ever since Apple announced it would shaking up its privacy settings with the new iOS 14.5 update and asking users to opt-in for tracking via the Identifier for Advertisers (IDFA) more than a year ago, there have been concerns around how advertisers can connect with customers using iOS apps.
Facebook went so far as to warn advertisers to expect “lower CPMs on Audience Network and likely other ad networks on iOS”.
However, both Twitter and Snapchat have since downplayed the impact of iOS 14.5 on their advertising capabilities.
Twitter also told shareholders that the expected impact of Apple’s changes to IDFA “was lower than expected”, while Snap’s chief business officer, Jeremi Gorman, said, “we observed higher opt-in rates than we are seeing reported generally across the industry, which we believe is due in part to the trust our community has in our products and our business”.
So has the industry overestimated just how detrimental Apple’s privacy changes will be?
According to Reload Media’s performance marketing operations lead Alex McCann, Snap and Twitter’s dismissals of Apple’s iOS 14.5 changes need to be taken with a grain of salt.
“The higher than expected opt-in rates across Snapchat and Twitter could be related to the slow rollout of the system update,” McCann told B&T.
“Devices without the update or those who have turned off the ‘request to track’ option in settings won’t receive the prompt. Apps are still using IDFA for unprompted users, so the impact of the update won’t be fully realised until Apple pushes the prompt to all devices.”
McCann did agree with Snap’s Gorman in regards to the importance of trust.
“As users decide which apps they trust with their data, we will begin to see different opt-in rates emerge,” he said.
“The iOS 14.5 update is a welcome change that is putting power back in the hands of the users, and high-quality platforms will be rewarded with user trust and improved advertising visibility.”
This could mean more good news for the platforms like Twitter and Snapchat, which appear to be attracting a higher opt-in rate than other apps.
“If we continue to see a trend of users placing more trust in platforms like Snapchat and Twitter, it will mean that digital marketers, advertisers and businesses will start to put more spend into these platforms that have better visibility.”
“As we move closer to the end of the year and peak sales periods like Click Frenzy, Singles Day, BFCM and the holiday season, high trust platforms with better opt-in rates are likely to receive more advertising attention.”
Australian owned and operated email and SMS marketing software company, Vision6, announced the launch of its first-ever national brand campaign and new brand platform “Simply Reliable”. Founded in 2001, Vision6 was one of the first email marketing software providers in Australia and has since been relied upon by thousands of Aussie businesses and organisations for […]
Out-of-Home media company JCDecaux New Zealand has appointed business growth specialist Adam McGregor in preparation for its bid to win upcoming local government street furniture tenders across the country. With contracts for the provision of street furniture including bus shelters across New Zealand up for renewal from late 2022, they collectively represent the biggest advertising […]
Fetch TV has announced that ABC iview will soon be available as a dedicated Virtual Playlist Channel on the Fetch platform. Virtual Playlist Channels (VPCs) were developed by Fetch to promote content discovery, and to provide a clear bridge between the traditional world of linear TV and the growing availability of on demand content via […]
Jackie Gillies, businesswoman, psychic medium and cast member of The Real Housewives of Melbourne is bringing her sassy, inspirational and adventurous spirit to her new podcast Shine It Up, With Jackie Gillies, which launches today via Acast. Hosted and distributed by the creator-first podcast company Acast, the show will offer listeners inspiration and motivation to […]
Crowdsourcing platforms DesignCrowd and BrandCrowd are promoting vaccination efforts in a unique way, launching a logo redesign contest among their networks of designers. The initiative saw iconic Australian brands such as Hungry Jack’s, Jetstar, JB Hi-Fi, and Bunnings undergo a redesign. “We thought it would be fun to see some other iconic Australian brands back […]
Jillian Davison has been named editor-in-chief of the recently relaunched Harper’s BAZAAR Australia. She will oversee all content, development and creative direction across the iconic magazine’s digital and brand platforms. Davison (pictured) succeeds Eugenie Kelly, who recently stepped down to pursue other opportunities. The announcement was made by Maureen Jordan, publisher of Harper’s BAZAAR Australia […]
Freedom Foods and 72andSunny Sydney have launched the first advertising campaign for Australia’s Own range of plant-based beverages. The campaign introduces a new visual world and identity for the brand and captures the healthy, positive feeling you get when spending time in nature and when consuming Australia’s Own certified-organic, plant-based beverages. As well as featuring […]