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SNAP Announces New Safety Measures to Comply With EU's DSA
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Snap Inc. (SNAP - Free Report) announced that it is taking privacy and safety measures aligned with the principles of the European Union's (EU) Digital Services Act (DSA) to build a more transparent digital environment for Snapchatters in the EU.
The company is giving Snapchatters in the EU more control over the content they are consuming, particularly in the Discover and Spotlight sections. Users will have the ability to better understand why specific content is being recommended to them and opt out of personalized content experiences. This is aimed at providing a more transparent and user-centric content experience.
Snap is also implementing a new notification system for account or content removals. Users, whose content or accounts have been removed, will receive information about the reasons behind the removal and have the option to appeal the decision. This aims to provide greater transparency and recourse for users affected by such decisions.
The company will appoint DSA compliance officers to oversee adherence to DSA requirements across various aspects of the business. This demonstrates Snap's commitment to staying compliant and upholding the regulations set forth by the DSA.
By implementing safety and privacy measures by design, SNAP aims to create an online platform where users can connect, express themselves visually and have a safe and enjoyable experience.
Snap Seeks to Update Advertising Practices in the EU and UK
Snap is making changes to advertising practices in the U.K. and EU. Personalized advertising for users aged 13-17 will be restricted to basic essential information, with most targeting and optimization tools unavailable for this age group.
Users aged 18+ will have more advertising transparency and control. They can access details about why an ad was shown to them and limit personalization of ads.
A digital library of EU-targeted advertisements will be created, providing transparency on paid advertising campaigns, including information about the advertiser, creative, campaign details and targeting.
Snap’s Artificial Intelligence Initiatives to Aid Declining Ad Revenues
Snap has been facing challenges in its advertising revenues due to fierce competition from the likes of TikTok, Alphabet (GOOGL - Free Report) owned Google and Meta Platforms’ (META - Free Report) Instagram as well as changes in Apple's app privacy policies.
META is pumping resources into developing generative artificial intelligence (AI) on its platform. Recently, the company announced that it is making its AI large language model, Llama 2, which will be available for commercial use through partnerships with major cloud providers, including Microsoft (MSFT - Free Report) .
With this expanded partnership, Microsoft and Meta are supporting an open approach to provide increased access to foundational AI technologies to benefit businesses globally. Investments in AI are also expected to draw higher revenues from Meta’s ad business.
In its race to target TV ad dollars, Alphabet allowed third-party (Nielsen and comScore) tagging of YouTube videos to determine the effectiveness of ads on YouTube versus ads shown on TV.
Snap is suffering from declining ad revenues as advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressure and rising costs of capital. In many high-growth sectors, businesses are reassessing investment levels amid the rising cost of capital, which led to cutbacks in spending on advertising. The persistent decline in the price-per-ad impression is likely to dent advertising revenues for the company in the near term.
To address this and maintain user engagement, Snapchat has introduced new AI features, some of which are exclusive to its paid subscribers. One of these features is the AI chatbot called My AI, which is integrated into the app's group chats, place recommendations and Lens suggestions.
Snap's premium service, Snapchat+, costing users $3.99 per month, serves as a platform for offering exclusive, experimental and pre-release features, and it has amassed more than 4 million paid subscribers.
Snapchat is also creating a feature called Dreams with Friends, allowing users to grant their friends the ability to create AI dream images that include both individuals. This new feature is expected to boost the Daily Active Users (DAUs) in the upcoming quarter.
The Zacks Consensus Estimate for SNAP’s third-quarter 2023 DAUs globally is pegged at 406.59 million, indicating year-over-year growth of 12%. The Zacks Consensus Estimate for SNAP’s revenues in 2023 is pegged at $4.5 billion, indicating a year-over-year decline of 2.16%.
Shares of this Zacks Rank #3 (Hold) company have gained 4.6% in the past year compared with the Zacks Computer and Technology sector’s rise of 32.4% in the same period. SNAP’s recent AI efforts are expected to boost its top line in the upcoming quarters.
Image: Bigstock
SNAP Announces New Safety Measures to Comply With EU's DSA
Snap Inc. (SNAP - Free Report) announced that it is taking privacy and safety measures aligned with the principles of the European Union's (EU) Digital Services Act (DSA) to build a more transparent digital environment for Snapchatters in the EU.
The company is giving Snapchatters in the EU more control over the content they are consuming, particularly in the Discover and Spotlight sections. Users will have the ability to better understand why specific content is being recommended to them and opt out of personalized content experiences. This is aimed at providing a more transparent and user-centric content experience.
Snap is also implementing a new notification system for account or content removals. Users, whose content or accounts have been removed, will receive information about the reasons behind the removal and have the option to appeal the decision. This aims to provide greater transparency and recourse for users affected by such decisions.
The company will appoint DSA compliance officers to oversee adherence to DSA requirements across various aspects of the business. This demonstrates Snap's commitment to staying compliant and upholding the regulations set forth by the DSA.
By implementing safety and privacy measures by design, SNAP aims to create an online platform where users can connect, express themselves visually and have a safe and enjoyable experience.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Snap Seeks to Update Advertising Practices in the EU and UK
Snap is making changes to advertising practices in the U.K. and EU. Personalized advertising for users aged 13-17 will be restricted to basic essential information, with most targeting and optimization tools unavailable for this age group.
Users aged 18+ will have more advertising transparency and control. They can access details about why an ad was shown to them and limit personalization of ads.
A digital library of EU-targeted advertisements will be created, providing transparency on paid advertising campaigns, including information about the advertiser, creative, campaign details and targeting.
Snap’s Artificial Intelligence Initiatives to Aid Declining Ad Revenues
Snap has been facing challenges in its advertising revenues due to fierce competition from the likes of TikTok, Alphabet (GOOGL - Free Report) owned Google and Meta Platforms’ (META - Free Report) Instagram as well as changes in Apple's app privacy policies.
META is pumping resources into developing generative artificial intelligence (AI) on its platform. Recently, the company announced that it is making its AI large language model, Llama 2, which will be available for commercial use through partnerships with major cloud providers, including Microsoft (MSFT - Free Report) .
With this expanded partnership, Microsoft and Meta are supporting an open approach to provide increased access to foundational AI technologies to benefit businesses globally. Investments in AI are also expected to draw higher revenues from Meta’s ad business.
In its race to target TV ad dollars, Alphabet allowed third-party (Nielsen and comScore) tagging of YouTube videos to determine the effectiveness of ads on YouTube versus ads shown on TV.
Snap is suffering from declining ad revenues as advertising partners across many industries are decreasing their marketing budgets, especially in the face of operating environment headwinds, inflation-driven cost pressure and rising costs of capital. In many high-growth sectors, businesses are reassessing investment levels amid the rising cost of capital, which led to cutbacks in spending on advertising. The persistent decline in the price-per-ad impression is likely to dent advertising revenues for the company in the near term.
To address this and maintain user engagement, Snapchat has introduced new AI features, some of which are exclusive to its paid subscribers. One of these features is the AI chatbot called My AI, which is integrated into the app's group chats, place recommendations and Lens suggestions.
Snap's premium service, Snapchat+, costing users $3.99 per month, serves as a platform for offering exclusive, experimental and pre-release features, and it has amassed more than 4 million paid subscribers.
Snapchat is also creating a feature called Dreams with Friends, allowing users to grant their friends the ability to create AI dream images that include both individuals. This new feature is expected to boost the Daily Active Users (DAUs) in the upcoming quarter.
The Zacks Consensus Estimate for SNAP’s third-quarter 2023 DAUs globally is pegged at 406.59 million, indicating year-over-year growth of 12%. The Zacks Consensus Estimate for SNAP’s revenues in 2023 is pegged at $4.5 billion, indicating a year-over-year decline of 2.16%.
Shares of this Zacks Rank #3 (Hold) company have gained 4.6% in the past year compared with the Zacks Computer and Technology sector’s rise of 32.4% in the same period. SNAP’s recent AI efforts are expected to boost its top line in the upcoming quarters.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.