‘There is no precedent to this’: How Criteo plans to adapt to Apple’s IDFA privacy update

Digiday 31 Jul 2020 04:02
July 31, 2020 by Lara O'Reilly

Apple’s forthcoming privacy update that will require users to give consent for apps to share their data with third parties — held on its anonymized identifier for advertisers, known as the IDFA — affects any company that owns an app, advertises on apps, or measures the effectiveness of that advertising. Ad retargeting specialist Criteo is bracing itself for the negative impact.

Criteo told investors during its second-quarter earnings call earlier this week that it forecasts a “$3 million headwind” from Apple’s update and the impact of “stricter consent banners in Europe” in the third quarter. The Court of Justice of the European Union ruled last year that websites need to obtain explicit consent from users in order to collect their personal data. 

To call out the potential IDFA impact in the third quarter is significant because Apple’s iOS 14 update is only expected to roll out in mid-September — the last two weeks of that quarter — and it will take a while for all Apple users to adopt the new operating system. Analysts from JMP Securities wrote in a research note earlier this week that the Apple update has the potential to hit Criteo’s revenue by $20 million in the fourth quarter and more than $60 million in 2021.

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