The news: A perfect storm of supply chain issues and changes to iOS app tracking led Snap to miss its Q3 revenue goals by $3 million, per The Verge.
How we got here: Apple’s new AppTrackingTransparency (ATT) framework, which started rolling out in April in iOS 14.5, lets users opt out of allowing an app to track their actions and has forced mobile apps like Snapchat to rush to find alternative solutions to measure the impact of ads.
Analyst take: “This is the first full quarter where a majority of iOS users globally have adopted the update on their device, so marketers have been seeing a fuller impact to their ad performance,” said Audrey Schomer, eMarketer senior analyst at Insider Intelligence.
More on this: Users must also opt in to tracking on a number of different apps for Snap to get a complete picture of what drove an action. But that goal may be hard to accomplish—analytics firm Branch found in July that only 25% of iOS users opted in to app tracking.
Supply chain woes: Even without the changes to ATT, shortages caused by supply chain issues may deter some brands from spending money on advertising that it lacks the product to back up.
Why it’s worth watching: Snap is unlikely to be the only platform that sees its bottom line impacted by iOS privacy changes.