Meta’s Ad Sales Are Suffering Now That Europeans Can Pick Less Personalization
Source: Wired ·
An earnings briefing on Wednesday revealed ad revenue has slowed since the European Union introduced the Less-Personalized Ads models at the beginning of this year.
From the source
Advertising revenue in Europe continued to decelerate in the three months through September, the company said on Wednesday, underperforming its global figures. In the region, advertising revenue grew 18 percent year-on-year, slowing from the previous two quarters and lagging the 33 percent growth seen in the US and Canada. Though Meta did not explicitly blame the introduction of the Less Personalized Ads model on Wednesday, chief financial officer Susan Li had previously warned “we’re seeing the impact of less personalized ads offering in Europe now that it’s fully rolled out, and that may be an additional headwind,” in July’s second quarter results follow-up call. The preceding two quarters had seen advertising growth fall from around 40 percent to 24 percent; in the US and Canada, it had accelerated from 31 percent to 33 percent, according to Ball. “We believe the EU’s free, personalized advertising option is contributing to the European slowdown,” Dominic Ball, equity research…