🚨Meta's European Ad Growth Slows to 18% Amid Less Personalized Options
Meta's European ad growth slows as users opt for less personalization
TL;DR
Meta's European advertising revenue grew 18% year-over-year, slower than previous quarters. The introduction of Less Personalized Ads, using 90% less data, is a headwind for growth. Advertisers see poorer returns in Europe compared to US and Canada.
Meta's European advertising revenue grew 18% year-over-year in Q3, but this is slower than the previous two quarters. The Less Personalized Ads model, introduced earlier this year, uses 90% less personal data, leading to fewer transactions and more irrelevant ads. This is a significant issue for advertisers in Europe, where the price per ad is not growing as fast as in the US and Canada. Meta was fined €200 million by the European Commission for breaching the Digital Markets Act, further complicating its efforts to maintain growth in Europe. The real story here is that advertisers in Europe are seeing diminishing returns, while the company continues to innovate in the US and Canada.
Key Points
Meta's European ad revenue grew 18% year-over-year in Q3, slower than previous quarters.
Meta introduced the Less Personalized Ads model in Europe, using 90% less personal data.
Meta was fined €200 million by the European Commission for breaching the Digital Markets Act.
Advertisers in Europe see poorer returns compared to US and Canada, with fewer transactions.
Meta's CFO says the company has 'a lot of runway' to increase ad conversions and efficiency.
Why It Matters
If you're an advertiser targeting European users, the 18% growth in Meta's ad revenue is a red flag. The Less Personalized Ads model, using 90% less data, is leading to fewer transactions and more irrelevant ads. This is a significant issue for advertisers in Europe, where the price per ad is not growing as fast as in the US and Canada. Advertisers need to reconsider their strategies and possibly look for alternative platforms.
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