Meta, Facebook's parent company, is said to be working on a new type of ad that will rely on fewer user data for targeting.
Since the release of iOS 14 in September 2020, which allowed iPhone users to opt out of having their data collected, Meta's ad revenue has been volatile. This feature is expected to cost Facebook nearly $16 billion in lost revenue alone in 2022.
It is said that Meta Ads will be measured using basic metrics such as engagement and video views rather than personal data.
This product, first reported by Business Insider, is said to be intended for advertisers looking to build brand awareness and shape product perception.
Pricing has yet to be announced, and Meta, Facebook's parent company, has yet to comment.
If "Basic Ads" does, as reported, rely on engagement and video views, this could imply that an advertisement's reach and performance will be determined by the amount of engagement it generates.
A highly engaged advertisement would theoretically reach a larger audience. However, some of this exposure will be offset by viewers who will never become customers.