Meta’s Ad Sales Are Suffering Now That Europeans Can Pick Less Personalization
Meta's advertising revenue growth in Europe has slowed significantly compared to North America, likely due to the introduction of 'Less Personalized Ads' (LPA) options. This change was mandated by EU regulators under the Digital Markets Act to protect user privacy.
Why it matters
The data highlights the financial impact of strict privacy regulations on big tech business models.
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.
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