02.10.2022

After having its advertising revenue significantly disrupted by Apple’s ad tracking changes, Meta is creating a product organization to discover new “potential premium features” for its family of well-known apps, according to a new internal memo.

The decision is being made as the California-based business faces numerous difficulties.

Facebook announced a 1% decline in revenue for the second quarter in July, marking the first time it had ever experienced an annual dip. The social network also warned that growth could slow much further in the next quarter. Profits, or net income, decreased 36% from the prior quarter to $6.7 billion.

According to reports, Meta lost $10 billion in ad revenue just last year as a result of Apple’s new “Ask app not to track” feature, which appears as a prompt on iPhones. The business reportedly anticipated that third-quarter revenue would decrease even further, to between $26 billion and $28.5 billion, citing “a continuation of the sluggish advertising demand” as a factor weighing on sales.

Facebook has been attempting to persuade investors that it can compete with TikTok for users after reporting its first quarterly fall in daily users this year.

‘I think we definitely see potential to build new types of products, features, and experiences that people would be willing to pay for and be thrilled to pay for,’ said John Hegeman, the group’s vice president of monetization at Meta.

From Daily Mail

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