![]() But I think many of the people spiking the football over his obsession with the metaverse are exaggerating when they frame it as an outright calamity. You’d be hard-pressed to find someone more eager than me to dunk on Zuckerberg. Like with social media, we need policies to protect the VR space from abuse and manipulation. By which I mean: Don’t get so confident Zuckerberg’s plan will fail that you neglect to think about what happens if it doesn’t. And particularly to those who don’t obsess over this technology and its implications, it sounds surreal.īut I do obsess over this technology, and I have a warning for all of us when it comes to Meta’s seeming plunge: Don’t hate regulate. ![]() “We believe that our current approach is GDPR compliant,” Li said, “and … we don’t expect that those decisions are going to affect our ability to provide personalized advertising in the EU.Meta, the name created for the apps and technologies company last year, is a testament to this commitment: a reference to the virtual world - the “metaverse” - accessible through this headset. Meta is, of course, appealing the ruling. This decision could mean Meta has to change its approach and rely on consent as its legal basis for targeted advertising. ![]() In early January, European regulators ruled that Meta’s practice of using its terms of service to require people to consent to tracking for targeted advertising is illegal under GDPR. Signal loss or, as Li referred to it at one point, the “signals landscape,” is an undeniable fact of life and of doing business (or trying to).Īnd beyond platform changes, regulators in Europe are also starting to take action. “But, you know, this is more generally the reality of the online advertising environment that we operate in.” “We are continuing to make progress and mitigating the impact from the ATT change,” Li said. However, Meta is “lapping” the aftershocks of ATT’s rollout and adoption, she said. “There is still certainly an absolute headwind to our revenue numbers,” said Susan Li, Meta’s newly appointed CFO. That shift was partially a reflection of engagement growth with surfaces that are still ramping up from a money-making perspective, like Reels.īut sticking with the topic of revenue headwinds, Meta is still dealing with the effects of Apple’s AppTrackingTransparency framework. “In terms of the revenue headwind ,” Zuckerberg said, “we’re still on track to be roughly neutral by the end of this year, maybe early next year.”Īfter that, Zuckerberg said he’s confident Meta will be in a position to profitably grow its Reels format.įor now, though, the overall number of ad impressions delivered across Meta’s family of apps increased by 23% year-over year in Q4, while the average price-per-ad decreased by 22% year-over-year. “The more that Reels grows, even though it adds engagement to the system overall, it takes some time away from Feed, and we actually lose money,” Zuckerberg said.īut Meta is making moves to improve Reels monetization efficiency on Facebook, which the company says has doubled over the past six months. More than 40% of Facebook and Instagram advertisers now use Reels across Meta’s apps, but Reels still monetizes at a lower rate than ads in feed. Meta is laser-focused on improving monetization for its short-form video product, also known as its TikTok clone. In addition to laying off 11,000 employees late last year – roughly 13% of its workforce – Meta plans to flatten its org structure, cut “layers” of middle management, “be more proactive about cutting projects that aren’t performing or may no longer be as crucial” – and, perhaps most importantly, deploy AI tools to help its engineers be more productive, Zuckerberg said.ĪI is also the driving force behind Meta’s ad performance tools, such as Advantage+, its investments in privacy-enhancing technologies and a discovery engine for content recommendation across Facebook and Instagram.Īnd then there’s Reels. Still, investors rewarded Meta for its stated management theme for 2023, which Mark Zuckerberg pledged will be a “year of efficiency.”Īlthough Zuckerberg alluded to the metaverse, Quest Pro and Reality Labs during the Q4 call, his main focus was on streamlining the company and boosting business performance. ![]()
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