Unlike Meta, Google is not heavily dependent on Apple for user data. That was the very same category that tripped up Meta in the last three months of 2021. In Google’s earnings call this week, the company reported record sales, particularly in its e-commerce search advertising. On Wednesday, David Wehner, Meta’s chief financial officer, noted that as Apple’s changes have given advertisers less visibility into user behaviors, many have started shifting their ad budgets to other platforms. Meta’s troubles have been its competitors’ good fortune. Google is stealing online advertising share. But Apple is unlikely to reverse its privacy changes and Meta’s shareholders know it. The company has railed against Apple’s shifts and said they are bad for small businesses that rely on advertising on the social network to reach customers. Meta said on Wednesday that Apple’s changes would cost it $10 billion in revenue over the next year. Those privacy moves have now hurt Meta’s business and are likely to continue doing so. Last spring, Apple introduced an “ App Tracking Transparency” update to its mobile operating system, essentially giving iPhone owners the choice as to whether they would let apps like Facebook monitor their online activities. Investors are likely to next scrutinize whether Meta’s other apps, such as Instagram, might begin to hit their top on user growth. Meta’s executives have pointed to other growth opportunities, like turning on the money faucet at WhatsApp, the messaging service that has yet to generate substantial revenue. Meta’s quarterly user growth rate was also the slowest it has been in at least three years. The dip signaled that the core app may have reached its peak. That’s the first such decline for the company in its 18-year history, during which time it had practically been defined by its ability to bring in more new users.
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