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 will 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 shape product perception. Pricing is yet to be announced, and Meta, Facebook’s parent company, has remained silent.
Since the release of iOS 14 in September 2020, which allowed iPhone users to opt-out of having their data gathered, Meta’s ad revenue has been shaky. In 2022, Facebook is predicted to lose approximately $16 billion in revenue due to this feature.
In the wake of Apple’s privacy crackdown, Meta put up a three-tier plan to salvage its ad business in April. Sheryl Sandberg, the COO of Meta, defined the strategy at the time as “doing more with less data.”
Previously, the Facebook ad platform was known for its large number of demographic and targeted audience possibilities. Recently, it appears that many marketers and businesses are abandoning the platform, citing a drop in performance. If Basic Ads can comply with GDPR requirements while still giving helpful targeting choices, they could be a decent alternative.
Basic Ads may be effective for well-known brands like Nike or Netflix, whose primary goals are engagement and awareness. Smaller businesses that rely on more specific targeting and lead generation, such as business owner courses, may struggle and eventually exit Facebook.
If “Basic Ads” does, as reported, rely on engagement and video views, this could 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 partially countered by viewers who will never become customers.
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