Meta was crushed by Apple’s privacy policy, how did Snap, Pinterest’s advertising revenue reverse its success?

Meta announced its fourth-quarter financial report last Thursday (3rd), saying that due to Apple’s adjustment of its privacy policy, its performance was not as good as expected, and it plunged 23% after the market. Unexpectedly, Snap and Pinterest, because of their small scale, different advertiser bases, and relatively new advertising operations, avoided the blow of Apple’s privacy policy, and Snap made its first profit since its listing, which inspired the stock to soar nearly after the market. 60%.

After Meta’s earnings report last Thursday, the stock price evaporated more than $200 billion in a day, dragging down Snap and Pinterest, but later in the day, Snap and Pinterest surged 55% and 20%, respectively, after reporting ad revenue.

Snap Chief Financial Officer Derek Andersen said the company’s use of products Snap built to measure ad delivery helped Snap’s ad business recover from Apple’s changes “faster than expected.”

Andersen noted that the company’s software, Snapchat, began research more than a year ago on how to serve ads to users “in a privacy-safe manner” to help Snap progress ahead of changes in Apple’s data tracking.

LightShed Partners analyst Rich Greenfield speculates that most of Snap’s advertisers are big brands with marketing resources and can adapt quickly to changes in the industry, while Meta’s advertisers are mainly small and medium-sized enterprises and can’t adapt so quickly to these changes.

As for Pinterest, it said it is investing in video features and creator-led content to boost engagement and ad revenue. Pinterest Chief Financial Officer Todd Morgenfeld pointed out that the company has not yet seen a material impact from Apple’s changes, but there may be in the future.

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