Weak advertising demand and competition from TikTok and other rivals yielded lower fourth quarter revenue and profit for Meta, Facebook\u2019s parent company.\u00a0<\/p>\n
Ad revenue was down 4% to $31.3 billion at Meta\u2019s advertising-supported properties, including \u00a0 Facebook, Instagram, Messenger, and WhatsApp. Advertising revenue was 97% of Meta\u2019s total revenue in the quarter.\u00a0<\/p>\n
Ad revenue in North America was flat, declined 16% in Europe and 3% in the Asia-Pacific. Revenue increased by 5% elsewhere (\u201cRest of World\u201d in the table below).\u00a0<\/p>\n
The decline was attributed to \u201cweak advertising demand, which we believe continues to be impacted by the uncertain and volatile macroeconomic landscape,\u201d by Meta CFO Susan Li.\u00a0<\/p>\n
Strategy shift for Facebook and Instagram content. <\/strong>\u201cFacebook and Instagram are shifting from being organized solely around people and accounts you follow to increasingly showing more relevant content recommended by our AI systems,\u201d Meta CEO Mark Zuckerberg said on the company\u2019s earnings call.\u00a0<\/p>\n Reels growth.<\/strong> Zuckerberg also said that Reels<\/a> plays across Facebook and Instagram have more than doubled over the last year, and the social component of people resharing Reels has more than doubled on both in just the last 6 months.\u00a0<\/p>\n The challenge for Reels is \u201cimproving monetization efficiency, or the revenue that\u2019s generated per minute of Reels watched,\u201d according to Zuckerberg.<\/p>\n The future for Meta ads.<\/strong> Meta will continue to monetize WhatsApp as well as messaging ads by utilizing an in-app feature allowing consumers to interact directly with businesses.<\/p>\n Plans to continue monetizing messaging with click-to-message ads, which currently generate revenue of $10 billion<\/p>\n Onboarding more businesses to the WhatsApp Business Platform, where businesses can answer customer questions, send updates and sell directly in chat<\/p>\n Apple\u2019s App Tracking Transparency measures still reducing revenue. <\/strong>\u201cI think what I would say is there is still certainly an absolute headwind to our revenue number,\u201d Li said when asked whether Apple\u2019s ATT (app tracking transparency)<\/a> measures were reducing revenue.\u00a0<\/p>\n \u201cHaving said that, we are lapping its rollout and adoption, and we\u2019re making progress in mitigating the impact due to a lot of the work that \u2026 I just talked about, including the different advertiser tools, including ad formats that bring conversions on site and including the longer-term AI investments in privacy-enhancing technologies.\u201d<\/p>\n Dig deeper. <\/strong>You can review the earnings transcript on Meta\u2019s Investor Relations<\/a> site.\u00a0<\/p>\n The post Meta blames weak advertising demand, rivals for Q4 2022 revenue decline<\/a> appeared first on Search Engine Land<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Weak advertising demand and competition from TikTok and other rivals yielded lower fourth quarter revenue and profit for Meta, Facebook\u2019s parent company.\u00a0 Ad revenue was down 4% to $31.3 billion at Meta\u2019s advertising-supported properties, including \u00a0 Facebook, Instagram, Messenger, and WhatsApp. Advertising revenue was 97% of Meta\u2019s total revenue in the quarter.\u00a0 Ad revenue in North America was flat, declined 16% in Europe and 3% in the Asia-Pacific. Revenue increased by 5% elsewhere (\u201cRest of World\u201d in the table below).\u00a0 The decline was attributed to \u201cweak […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"h5ap_radio_sources":[],"cybocfi_hide_featured_image":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-8002","post","type-post","status-publish","format-standard","hentry","category-best-seo-blogs"],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":false,"author_link":"https:\/\/craighordlow.com\/author\/"},"_links":{"self":[{"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/posts\/8002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/comments?post=8002"}],"version-history":[{"count":0,"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/posts\/8002\/revisions"}],"wp:attachment":[{"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/media?parent=8002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/categories?post=8002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/craighordlow.com\/index.php\/wp-json\/wp\/v2\/tags?post=8002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}