Rising energy prices will increase the cost of trucking and other transportation - thereby raising prices.Shortage of semiconductors limits supply of many products and shoppers will be so frustrated that they give up on buying some of those items for now.I see seven reasons that the supply chain situation will remain grim: He expects ad demand to drop further until supply chain bottlenecks are cleared up. Spiegel told investors that its advertisers face supply chain issues and labor shortages which reduce their need to generate more demand to buy their products. Snap also blamed a problem that will likely affect all digital advertisers - including Twitter, Facebook, Google, and Amazon: retailers can’t satisfy demand so they see less need to advertise. The FT reports that Apple Search Ads has increased its market share over three-fold in the last six months to 58% of all ad-induced iPhone app downloads compared to 17% in October 2020. What’s bad for Snap is great for Apple’s own ad business. "While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” Spiegel said. Simply put, Snap is not able to help its advertisers to manage their ad campaigns as well as it could before. Since over 50% of Snap’s revenue comes from direct response advertising on a mobile-only platform, the changes to iOS ad-tracking represent what CEO Evan Spiegel dubbed a “more significant headwind in the current environment." Snap complained that Apple’s new service for measuring engagement with ads did not serve the company well.
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