Snap and Twitter will be the first of the major ad-supported internet companies to report earnings on Thursday, while Alphabet’s Google, Facebook, Pinterest, and Amazon will follow next week.
“Digital advertising names should continue the strong revenue performance trajectory we’ve seen the past few quarters,” Bernstein analysts said in a note earlier this week. “The permeable advantage of digital ads should shine through as new pockets of ad spend (travel & experiences, financial services, and B2B) replace spend from verticals with softening user interest (retail, media & games).” But there’s enough strong momentum that those factors may not matter so much.
“Given the ad sector tailwinds, it’s likely that the IDFA revenue pressures get lost in the wash,” they wrote.
Wedbush analysts said the advertisers they surveyed are seeing an impact on return on investment from Apple’s changes, showing that advertisers are reallocating budget and diversifying to other platforms.
“Despite the challenges from Apple’s changes, Google and Facebook remain dominant today and are regularly the preferred platforms for advertisers,” they wrote. “Google Search, Facebook, Google Shopping, and Instagram were ranked most often as the highest [return on advertising spend] platforms.”
“It’s likely that Twitter may deliver revenue guidance at the top of their peer group,” they wrote. Wall Street has exhaustively tried to determine the kind of impact Apple’s recent privacy changes will have on digital ad companies like Facebook and Snap. The second-quarter earnings reports of major ad-supported internet companies will finally start to yield some answers. So we have told you all you need to know about this.