Precise targeting and affordable ad options have driven Meta's explosive growth, which is now threatened by new privacy regulations and a slew of competitors. From digital ad-serving technology to media networks, here's how companies are unbundling one of the world's leading digital advertisers.
In Q2’22, Meta’s digital advertising business — which accounts for approximately 97% of its overall revenue — reported its first-ever drop in revenue.
That figure dropped again in Q3’22, further compounding digital advertisers’ fears of a major slowdown — and Meta expects to see revenue drop again at year-end.
This can largely be attributed to the new challenges the company faces in effectively targeting audiences, including Facebook’s stagnating user base, generally tighter marketing budgets, and Apple’s updated privacy settings, which let iOS users opt out of targeted ad tracking.
However, another threat has arisen and is only getting stronger: innovative startups. They’re attacking the digital advertising space, and Meta’s core business, from a number of angles.
In this report, we identify these companies, among others, and look at how they’re stirring the pot across data services, new ad formats, and digital media & entertainment.
