Apple Tried To Destroy Meta’s Ad Business. Here’s How It Emerged Stronger Than Ever.
Leaning on artificial intelligence and other novel workarounds, Meta saved its ad business.
In an instant, Apple brought the hammer down on Meta’s ad business.
After allowing developers to monitor people’s activity from app to app, the iPhone maker asked them if they wanted to be tracked. Most, unsurprisingly, said no.
That hit Meta right where it hurt. The social giant's secret weapon was its ability to target people with great precision — since most used their real identities on Facebook, Instagram and WhatsApp — and figure out whether the ads they saw led to purchases off Facebook. Without that tracking, the system basically broke.
After Apple’s move, Meta CEO Mark Zuckerberg said the company would take a $10 billion hit. To adjust, his engineers would basically need to rebuild its advertising technology from the ground up. A Wall Street Journal headline blared: “Inside Facebook’s $10 Billion Breakup With Advertisers” and featured a longtime Facebook advertiser telling a reporter, “it kind of feels like the end of an era.”
But then, somehow, Meta beat Apple’s restrictions and emerged stronger than before. Today, Meta’s stock price tops $700. And during its most recent earning call, it reported $40.59 billion in revenue, a 19% jump year over year, massive growth for a company if its size.
Instead of suffering, Meta has been roaring back since that initial $10 billion hit. A lot of companies would’ve been screwed. But the methods Meta employed, relying on artificial intelligence and other novel workarounds, might’ve saved its business.
Here’s how it pulled it off:
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