Meta is working on developing a brand new ad infrastructure to continue delivering targeted ads despite iOS App Tracking Transparency and EU legislation.
Meta (a former Facebook group) has published its results for the last quarter, and if the company remains a cash-generating machine, a few glitches have come to seize up the normally well-oiled engine. Between the loss of one million daily active users and advertising revenue on iOS, investors took fright and Meta tumbled on the stock market.
iOS App Tracking Transparency Hurts Facebook
Mark Zuckerberg tried to put out this fire and reassure shareholders by revealing several future projects from the parent company of Facebook, Instagram, WhatsApp and Quest (formerly Oculus). One of them relies on rebuilding its entire advertising infrastructure.
The main goal is to get around the restrictions applied by Apple on iOS with the App Tracking Transparency (ATT) feature introduced with the 14.5 update. As a reminder, this prevents applications from following the navigation path of users, and therefore from offering them targeted advertisements based on their preferences, which are necessarily negotiated at a higher price than less precise advertisements.
According to a first estimate, advertisers have lost on average between 15 and 20% of their income since the arrival of ATT, most iPhone owners (around 80%) refusing advertising tracking since the choice is given to them.
The EU also complicates data collection
We don’t yet know precisely how, but Meta will therefore adapt and try to find a solution to ” continue to grow and deliver high-quality, targeted ads in the words of Mark Zuckerberg. The bulk of Facebook and Instagram’s revenue comes from targeted advertising.
This change in the way of thinking about online advertising will not only take into account the ATT of iOS, we learn, but also the new regulations already in place or to come within the European Union, which contribute also to dry up sources of personal data for advertisers.
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