One of the things that made the iOS 14.5 changes to devastating to the ad business, was that Apple devices started requiring apps to put a question directly in front of their users — can we use your personal data for ad targeting, or no? Most people, of course, said no.

Now, The Wall Street Journal is reporting today that Meta is considering a similar nuclear option, proposing it asks European users for consent to use their on-app behaviour for ad targeting. 

It's a move some say could break its ad business.

☑️ Ad-Targeting Consent

This is part of a proposal — a concession, really — to European privacy regulators. Meta said it could set up their systems to ask users by the end of October. The idea is to help resolve an ongoing legal battle over such ads in the region.

Unlike its current approach, where users in Europe can only opt out of activity-based ads through the completion of a lengthy form, this new proposal takes it a step further. Rather, a consent-based approach would mean asking users to say “yes” or “no” before showing them personalized ads, and EU law mandates that users must still have access to the service even if they say no. 

💰 Impact on Ad Revenue

As the Journal report points out, ad revenue could suffer big time.  

“If a large number of users decline ads based on their activity on Instagram or Facebook, Meta’s systems would end up with fewer signals to infer interests and build audiences for ads that make up the bulk of its revenue. That could make its ads less effective, which could weigh on prices.”

Meta plans to proceed with the change following discussions with Ireland’s Data Protection Commission. The company added that advertisers will still be able to run personalized ad campaigns in Europe if the proposal goes forward, but only to users who opt in.

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