Apple’s iOS changes only a ‘modest’ impact on Google ad revenue

Chris Pash
By Chris Pash | 28 October 2021
 

Google says it is seeing only a modest impact so far from Apple’s iOS  changes.

Alphabet, Google’s parent company, posted a record $US65.1 billion in revenue for the September quarter, ahead of analyst expectations of $63.34 billion. 

The result reflects strong advertiser spending, helped by an acclerated switch to digital advertising brought on by COVID-19. 

Ruth Porat, Google's CFO, told analysts: “We're pleased with the strength across our business in the third quarter. It was broad-based. It was global.

“In terms of the iOS 14 changes specifically, they had a modest impact.”

Social media platforms have felt the Apple changes which make it difficult to track consumer interaction with advertising without their consent.

Apple's iOS privacy updates impacted Facebook’s third quarter results with the social media giant expecting it to last at least into the next quarter.

“Our outlook reflects the significant uncertainty we face in the fourth quarter in light of continued headwinds from Apple's iOS 14 changes, and macroeconomic and COVID-related factors,” Facebook said in its earnings update.

Snap says the changes by Apple created a more significant impact on the business than expected. 

CEO Evan Spiegel told analysts: “While we are excited about the continuing growth of our business and improvement in our cost structure, we missed the lower end of our guidance by $3 million due to a few key factors, including changes to advertising tracking on iOS and macroeconomic factors that have impacted our advertising partners.

“Our advertising business was disrupted by changes to iOS and tracking that were broadly rolled out by Apple in June and July. 

“While we anticipated some degree of business disruption, the new Apple provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS.”

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