Meta would have developed privacy-friendly advertising options
Meta, Facebook’s parent company, is reportedly developing a new type of ad that will rely on less user data for targeting.
Rather than relying on personal data, ads will be measured using core metrics like engagement and video views.
Originally reported by Business Insider, this product would be aimed at advertisers looking to build brand awareness and shape product perception.
Pricing has not been announced and so far Meta, Facebook’s parent company, has not commented.
The changes appear to be driven by privacy changes
Meta’s ad revenue has been on shaky ground since the release of iOS 14 in September 2020, which allowed iPhone users to opt out of data collection. This feature is expected to cost Facebook nearly $16 billion in lost revenue in 2022 alone.
Last April, during Meta’s first quarter 2022 earnings call, CEO Mark Zuckerberg addressed concerns about what this could mean for the social media giant and discussed strategy moving forward. .
“We’re managing the headwinds of signal loss…That means increasing first-party understanding of what people care about by making it easier for people to engage with businesses in our apps – whether that’s shopping on Facebook or Instagram, or messaging businesses on WhatsApp or Messenger,” Zuckerberg said on the call. “It also means making sure we’re developing the best privacy-enhancing technologies to provide a precise targeting and measurement to advertisers, even when purchases do not occur in our apps.”
Ad quality could outweigh the lack of granular targeting
If “core ads” rely on engagement and video views, as reported, this could mean that an ad’s reach and performance will depend on the amount of engagement it generates.
An ad that receives a high level of engagement would theoretically reach a larger audience. However, this exposure will be compensated to some extent by viewers who will never convert into customers.
Source: Business Insider
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