Why is Facebook trying to get out of the “squad”?

A source from Business Insider said that Facebook is in the early stages of developing a “basic advertising” product that does not rely on any personal information from users. This is because privacy changes have reduced the company’s ability to collect user data.

As Facebook engineers call it, “basic advertising” is aimed at brand advertisers trying to build user awareness of a product. It will be measured using basic metrics, including engagement and video views.

A report from Vice said that Facebook has been working on this product since April. Most likely, the company will start testing from January 2023 in the European market – where there are strict regulations on protection. user data, then the US.

According to Business Insider, this product seems to be in stark contrast to Facebook’s targeting tools that advertisers have used in the past.

“Advertising essentially contrasts with one of the biggest attributes on Facebook’s advertising platform, which is targeting details,” said a Facebook advertising partner.

In April 2021, Apple introduced the App Tracking Transparency feature, which forces app developers to ask users’ permission before they can be tracked on other apps and websites. This feature has made it difficult for Facebook and advertisers to show information to the target audience.

According to a report for the first quarter of 2022 from Meta, the company’s profit was only $ 7.5 billion, down 21% compared to the same period last year. Revenue rose 7% to $27.9 billion. This is the slowest growth rate since the company went public a decade ago. Even according to estimates from data management company Lotame, Apple’s changes will affect Meta’s 2022 revenue by $ 12.8 billion.

Besides, Facebook is also under intense competitive pressure from many formidable competitors. Among them, the most prominent is TikTok – a platform for sharing short format videos. During an internal meeting, Zuckerberg said that the company is facing “unprecedented levels of competition” from rival TikTok.

Meta said it will rebuild its advertising business, after reporting the first decline in active users recorded in the fourth quarter of 2021.

“We’re making these changes to better align our goals with the media outcomes advertisers are already familiar with. It also helps us provide guidance. suitable for setting up successful campaigns,” said Meta.

In addition to dismal business results and stiff competition from rivals, Facebook also faces a shortage of personnel, when a series of pillars have been and are preparing to leave. Recently, on her official Facebook, Sheryl Sandberg – Chief Operating Officer of Meta (Facebook’s parent company) – also announced that she will leave the company after 14 years of working.