Second-hand retailer Poshmark on Tuesday forecast third-quarter revenue largely below estimates and warned that its marketing efforts were taking a hit from Apple’s new App Tracking Transparency privacy controls over digital advertising tracking.
App Tracking Transparency (ATT for short) is a feature of iOS, iPadOS, and tvOS that debuted in version 14.5 of each. ATT requires applications to ask permission if they want to track your activity across other companies’ apps and websites.
Uday Sampath Kumar for Reuters:
Apple in April enforced a rule requiring developers to seek permission for gathering data that can be used to track users across other sites and apps.
Poshmark, which offers everything from pre-owned T-shirts to high-end boutique dresses, felt the impact of Apple’s new policy late in the second quarter and expects it to continue into the current quarter as well, Chief Executive Officer Manish Chandra told Reuters in a call.
But Chandra was confident the effects of Apple’s policy were only temporary, as Poshmark has been spending heavily on alternatives such as TV ads and tie-ups with celebrities like Marie Kondo.
“It will work itself out as we go through the quarter and the second half, largely because our channels are quite diversified and super adaptable,” Chandra said.
MacDailyNews Take: To paraphrase Dr. Ian Malcolm: Advertising finds a way.
Good