Facebook ads business would suffer, as a result of the coronavirus pandemic and Apple’s privacy changes. Thus, the company predicts that that Apple’s App Tracking Transparency requirements will impact ad targeting more than expected.
More downturns for the Facebook ads business
As a result of the pandemic and also of Apple’s new privacy changes, the Facebook ads business suffers. According to Apple’s tracking transparency requirements, users have to allow apps track their online activity. Thus, the ad targeting system suffers a lot, and advertisers can not reach their potential customers.
Moreover, Snap’s stock plunged last week by almost a quarter. And this was the result of the warning of slower growth and missing estimates.
The giant does not suffer too much
Despite the Frances Haugen’s allegations, that the social media giant prioritizes profits over safety, the company is well. In fact, the company reported revenues of $29.01 billion for the third quarter. This is slightly below what Wall Street estimated – $29.06 billion.
But Facebook whistleblower’s allegations do not seem to have come to an end. Thus, she mentioned that “hateful, angry, divisive” ads are usually cheaper. She made this statements in front of the British lawmakers.
Of course, any user has a tool at hand, to stop all the ads, including the negative ones on Facebook. One of the best out there is Ad Guardian Plus.
Haugen appeared at a parliamentary select committee meeting. Here, she mentioned that Facebook ads are partially priced based on the likelihood that people like them, share them, and engage with them.
Facebook changes the reporting structure, not its name
Although there were rumors that the company would change its name, this has not happened yet. Still, the company announced a new reporting structure. Thus, the company mentioned it would start reporting as two businesses. The first one would be the one that includes the social networking apps. On the other hand, it would be the Facebook Reality Labs. This one focuses on augmented and virtual reality.
The new structure will come into effect for the current quarter earnings of the company.
Many news outlets focused lately on stories saying that the company is aware of the harms its platform causes. First of all, these would affect the mental health of teenagers. But they would also jeopardize democracy and developing countries, such as India.