As the advertising industry is affected, Meta is creating more paid features in its applications
Hurt by declining revenue from its ad business after Apple iOS privacy changes to the App Store, Meta is setting up a new team to identify and build more paid features for Facebook, Instagram and WhatsApp.
According to The Verge, the new division is Meta’s “first serious foray into building paid features on its core social apps.”
The “New Monetization Experiences” group will be led by Pratiti Raychoudhury, a former head of research at Meta, the report said Wednesday evening.
The new monetization drive comes at Meta after the company reported a revenue loss in the June quarter for the first time since its IPO in 2007, predicting third-quarter growth could plummet even further.
Facebook reported a 1% drop in revenue to $28.8 billion, down 1% from $29.07 billion in the second quarter of 2021.
Overall, Meta’s profit fell 36% to $6.7 billion in the quarter.
Apple iOS privacy changes will cost Meta $10 billion in 2022, the company predicted, accusing Apple of favoring Google over app-based platforms like Facebook with its privacy policies.
Apple’s iOS 14.5 update, released in April 2021, came with an App Tracking Transparency (ATT) feature that affected digital advertising for tech giants.
Sheryl Sandberg, former chief operating officer of Meta, had said that Apple was creating two challenges for its advertisers.
“The first is that our ad targeting accuracy has decreased, which has increased the cost of results. The other is that measuring those results has become more difficult,” she said.
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