Meta Reportedly Developing Privacy-Friendly Ad Options
Written by ABC AUDIO on June 17, 2022
Meta, Facebook’s parent company, is reportedly in the process of developing a new type of ad that will rely on less user data for targeting.
Rather than relying on personal data, the ads will be measured using basic metrics like engagement and video views.
Initially reported by Business Insider, this product is said to be intended for advertisers seeking to build brand awareness and shape product perception.
Pricing has not been announced and so far, Meta, Facebook’s parent company, has not commented.
Changes Seemingly Drive By Privacy Changes
Meta’s ad revenue has been on unstable ground since the release of iOS 14 in September 2020, which allowed iPhone users to opt-out of having their data collected. This feature is expected to cost Facebook nearly $16 billion in lost revenue in 2022 alone.
Last April in Meta’s First Quarter 2022 Results Call, CEO Mark Zuckerberg discussed concerns about what this could mean for the social media giant and addressed strategy moving forward.
“We’re managing the headwinds from signal loss… This means growing first-party understanding of what people are interested in by making it easier for people to engage with businesses in our apps – whether that’s completing purchases on Facebook or Instagram, or messaging businesses on WhatsApp or Messenger,” Zuckerberg said on the call. “It also means making sure we build the best privacy enhancing technologies to provide accurate targeting and measurement to advertisers even when purchases aren’t happening within our apps.”
Quality of Ads Could Counterbalance Lack of Granular Targeting
If “Basic Ads” does rely on engagement and video views, as is being reported, this could mean an advertisement’s reach and performance will depend upon 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 offset to some degree through viewers who will never convert into customers.
Source: Business Insider
Featured Image: kovop58/Shutterstock
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