The iPhone manufacturer now requires every app that wants to track personal data and pass it on to third parties to first obtain the consent of the user. This threatens to decrease the personalization of ads and as a result, the developers of apps like Zynga make money for them.
With the acquisition of Chartboost, Zynga will provide technologies for internal personalization of advertisements so that no data has to be exchanged. Chartboost was founded in San Francisco in 2011 and says its technology reaches more than 700 million users per month and participates in more than 90 billion ad auctions per month.
Applovin, a rival to Zynga, followed a similar strategy earlier this year when it bought the adtech group Adjust for $ 1 billion.
“Never let a good crisis end,” Frank Gibeau, CEO of Zynga, told the Financial Times. By vertically integrating and owning more of the ad network, Zynga realized that users would get complete records and created the right environment for ad customization.
The acquisition was announced along with Zynga’s earnings for the first quarter, which raised its guidance for 2021 after posting record sales of $ 680 million, a 68 percent year-over-year increase and above guidance of 648 million . USD according to Visible Alpha estimates.
For the full year, revenue is now expected to be $ 2.7 billion, an increase of $ 100 million from the previous forecast and 37 percent over 2020.
In-game purchase income rose 62 percent to $ 557 million for the quarter. Advertising revenue rose 108 percent to $ 123 million.
Gibeau predicted that other companies will also create “walled gardens” to leverage data from their user bases and reduce reliance on third-party ad platforms. Apple itself is now also expanding its advertising network on the iPhone.