Poshmark Inc | August 13, 2021
Second-hand retailer Poshmark Inc on Tuesday forecast third-quarter revenue largely below estimates and warned that its marketing efforts were taking a hit from Apple Inc's new privacy controls over digital advertising tracking.
Poshmark's shares slipped 7% in after hours trading, poised to settle more than 25% below its initial public offering price in January.
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. Facebook Inc had criticized the policy, saying it could harm customers.
Poshmark, which relies on social media marketing to draw in shoppers, 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.
The company forecast third-quarter revenue of $81 million to $83 million, with the mid-point slightly below estimates of $82.4 million.
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.
Poshmark said revenue rose 22% to $81.8 million in the second quarter, beating Refinitiv IBES estimates of $80.3 million, as it pulled in thrifty young buyers looking for more environmentally sustainable ways to shop for everything from pre-owned T-shirts to high-end boutique dresses.
The Delta variant of the coronavirus was not a major concern for Poshmark in its revenue outlook, Chandra said.
Smaller rival ThredUp Inc's shares rose over 7% on Tuesday after its second-quarter revenue surpassed estimates. It also forecast third-quarter revenue above expectations.
AD TECH AND MARTECH
Crunchbase | June 11, 2021
Apple’s recent privacy changes will not spell the end for adtech companies, but will force companies in the industry to rely on new tech and innovation as users demand more privacy.
The changes — as many people have seen on the commercials and the pop ups on their phones — went into effect less than two months ago and allow users to opt out of ID for Advertisers, or IDFA as they are commonly called. Those IDFAs allow advertisers to track iOS users’ activity across apps to better target ads and measure the effectiveness of their campaigns.
Those new rules also do not appear to be going away. Earlier this week during its annual Worldwide Developers Conference, Apple said its upcoming iOS 15 update will give iPhone users even more control over their privacy and see more detail about where their data is going. Users of the new iOS will be able to see who their apps are sharing data with and keep internet activity more private.
Those enhancements to user privacy will affect an advertising market that saw more than $2.7 billion in venture invested globally in it last year and is already at $3.2 billion this year, according to Crunchbase numbers. Mobile advertising specifically only makes up a small fraction of those dollars — with about $278 million in venture coming in last year.
“Apple’s moves should send a signal to startups that they should take privacy issues seriously at an early stage,” said Christine Tsai, CEO and founding partner at 500 Startups and an investor in adtech.
“They’re less costly to implement while companies are still young, which is what we’re encouraging our startups to do as part of our (environmental, social and governance) initiative,” said Tsai, who was part of the original technical support team that helped launch Google AdSense.
Permutive | June 20, 2022
On June 15, Permutive launched the infrastructure for the responsible web- bringing together hundreds of publishers, brands, and adtech companies such as The Financial Times, Penske Media Corporation, RocketMill, Kimberley-Clark, and PubMatic to work together to use data responsibly to restore consumer trust.
Consumers are increasingly opting out of sharing their information for advertising. As many as 40% of users are browsing in cookie-less environments. Permutive research shows that up to 55% of users in Europe are hitting ‘reject all’ on cookies. Permutive’s responsible web infrastructure wants to alleviate the increasing regulatory pressure on the industry and address dwindling consumer trust and reduced addressability. The infrastructure will deliver over 20 billion targeted impressions in 2021 via publisher-owned, consented data and with no third-party cookies entering the bidstream.
“The opportunity and importance for publishers and brands to collaborate is growing in significance,” saysRyan Lewis, Media Director at RocketMill. “Understanding the audience has always been paramount in marketing, now more than ever, and by understanding, creating, and activating audiences in a privacy-centric way, brands have a truly powerful opportunity to connect and create meaningful ad experiences with consumers.”
"Permutive has created new ways to work with some of the largest advertisers in the world," saysBrett Goverman, Associate VP, Data Strategy at PMC. “Publishers need to monetize all their audiences and have the tools to communicate who their audience is and why they are valuable. Success within the responsible web is twofold; one – control over your data, and two – successful monetization of your inventory and audience.”
Permutive offers publishers 100% addressability and the tools to trigger audiences consistently across the media transaction types. Brands can activate first-party audiences by collaborating with the right media owners to extend the scale of their data. Adtech companies will be able to build on Permutive’s infrastructure to deliver incremental value by offering their customers’ audiences that are addressable, rich, consented, and relevant.
“Permutive is an ideal partner to align with to protect consumer privacy while delivering high-performing, publisher first-party-data solutions that lead the industry,” says Andrew Baron, SVP, Addressability and Marketplace at PubMatic.
“Publishers, brands and adtech partners are growing a new digital ecosystem using the Permutive infrastructure,” says Joe Root, CEO and co-founder at Permutive.
“Publishers, brands and adtech partners are growing a new digital ecosystem using the Permutive infrastructure,” says Joe Root, CEO and co-founder at Permutive. “Over 20 billion targeted impressions were delivered on our infrastructure in 2021; we’re excited to see this grow as the advertising industry moves to a more responsible web.”
Permutive has partnered with companies such as PubMatic, Neustar, and OpenX to create solutions for publishers and brands that deliver addressability at scale, without compromise.