Facebook’s parent company Meta is reportedly working on a new type of ad that will rely on less user data for targeting.
Ads will be measured using basic metrics like engagement and video views, rather than relying on personal data.
Originally reported by Business Insider, the product is said to be for advertisers looking to build brand awareness and build product awareness.
Pricing has not been announced, and so far, Facebook’s parent company, Meta, has not commented.
Changes that appear to be driven by privacy changes
Meta’s advertising revenue comes from iOS 14 released In September 2020, iPhone users can opt out of their data being collected.This feature is expected to cost Facebook nearly $16 billion in lost revenue Only in 2022.
Last April at Meta’s First Quarter 2022 Results Conference CallCEO Mark Zuckerberg discussed concerns about what this could mean for the social media giant and talked about its strategy going forward.
“We’re dealing with the downside of a loss of signal… which means that by making it easier for people to interact with businesses in our app — whether it’s completing a purchase on Facebook or Instagram, or messaging businesses, we can make it easier for people to The first party is more aware of what people are interested in. On WhatsApp or Messenger,” Zuckerberg said on the call. “It also means making sure we build the best privacy-enhancing technology to provide advertisers with accurate targeting and measurement, even when purchases don’t happen in our apps.”
Ad quality can offset lack of precise targeting
If the “basic ad” does depend on engagement and video views, as has been reported, that could mean that the reach and effectiveness of the ad will depend on the engagement it generates.
An ad that gets high engagement will theoretically reach a larger audience. However, this exposure will be partially offset by audiences who will never convert into customers.
resource: Business Insider
Featured image: kovop58/Shutterstock
