The 'Basic Ads' from Meta will not employ advanced targeting and are meant to compensate for data privacy issues.
Meta, Facebook's parent corporation, is said to be working
on a new sort of ad that would rely less on user data for targeting.
Ads will be measured using basic measures like engagement
and video views rather than personal data.
This solution, according to Business Insider, is designed
for advertisers looking to raise brand recognition and change product
perception.
Pricing has yet to be revealed, and Meta, Facebook's parent company, has remained silent.
Changes Seemingly Drive By Privacy Changes
Since the introduction of iOS 14 in September 2020, which
allowed iPhone users to opt-out of having their data gathered, Meta's ad income
has been shaky. In 2022, Facebook is predicted to lose approximately $16
billion in revenue due to this feature.
CEO Mark Zuckerberg addressed worries about what this may
entail for the social media company and strategy moving ahead at Meta's First
Quarter 2022 Results Call in April.
"We're dealing with the signal loss headwinds...
"This includes expanding our first-party understanding of what people are
interested in by making it simpler for users to connect with companies in our
applications – whether that's buying purchases on Facebook or Instagram or
contacting businesses on WhatsApp or Messenger," Zuckerberg said during
the call. "It also involves ensuring that we construct the greatest
privacy-enhancing technology so that we can give accurate targeting and
measurement to advertisers even when purchases aren't made within our
applications."
Ad quality may be able to compensate for the lack of granular targeting.
If "Basic Ads" does, as claimed, rely on
interaction and video views, this might indicate that an advertisement's reach
and performance will be determined by how much involvement it creates.
Theoretically, an ad with a high amount of engagement would
reach a wider audience. However, this exposure will be somewhat countered by
viewers who will never become customers.
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