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Meta’s Latest Ruling in EU And Its Impact On Facebook Ad Performance

In recent months, Meta has taken blow after blow, losing billions of dollars in advertising income. This comes as a result of iOS14 security updates taking a toll on Facebook ad performance and revenues, macroeconomic forces that have impacted consumer spending, as well as new kid on the block, TikTok taking some attention away from Facebook and Instagram. 

And now the latest ruling in Europe concerning data privacy regulations forebodes that even more trouble may be brewing on the horizon. 

These rulings may significantly impact Facebook ad performance in Europe and the overall performance of ecommerce brands there. So, it is crucial to be aware of these changes so you can plan ahead, plan accordingly and navigate them successfully.

The Latest EU Ruling Against Meta’s Ad Targeting

On Dec 6, 2022, the European Union ruled against Meta tracking user data within the app as a means for ad targeting without the user’s consent, dramatically cutting down on the data that the platform could use for selling ads. 

As a result of the ruling, Meta threatened to shut down the use of Facebook and Instagram in Europe.

How Will the Meta EU Ruling Affect Facebook Marketers and Ad Performance?

It is important to note that iOS14 security updates only impacted the tracking of users outside Meta. Meta, therefore, still has access to users’ data from inside the platform to leverage for targeted ads.

But regardless of the data the platform can or can’t collect inside or outside of the platform, these data regulations will force the social media giant to potentially have to reconsider its ad targeting model. The same goes for ecommerce brands who market their products and services using Facebook ads. 

These data security updates have already taken a toll on Facebook ad performance, making for false negatives, unreliable attribution and failed data optimization overall.

How Will This Impact Ecommerce Brands’ Future Ad Targeting Strategy?

The thing is these sorts of privacy updates often cause chain reactions. The U.S. will likely need to weigh in on where it stands regarding data privacy regulations of its Facebook users, next.

In the short term, as the Facebook algorithm no longer has web pixel data from users who opted out of having their data tracked outside of Meta, brands that rely on a broad targeting model will likely have to rethink their Facebook ad targeting strategy. 

The pendulum has already started swinging in the direction of intent-based, owned audiences and it seems they will only grow in importance over time. Meta’s ad revenues and the Facebook ad performance of e-commerce brands on the platform will then depend on importing their own audiences based on data they already own. 

Here at The Snow Agency, we are focusing on Shopify Audiences and Angler AI as valuable tools for building owned audiences based on first-party customer data.

We’ve been digging deep into Shopify Audiences, for more information on Shopify Audiences, read more here:

What is Shopify Audiences? Here’s What You Need to Know

Shopify Audiences Best Practices

Elevate Your Ad Strategy With The Right Agency to Scale Your Business

As owned, intent-based audiences continue to take on more importance in a heightened, fiercely competitive marketplace, you will need a partner on your side that knows what it takes to succeed. Our digital marketing experts here at The Snow Agency will passionately help you take your ecommerce store to the next level, get your brand in front of the right audiences and help make you moves that will mean everything to your bottom line. 

Reach out for a free consultation today.