![]() ![]() Meta is especially focused on incorporating ads into its fast-growing short-form video content known as Reels, using artificial intelligence to target customers with more-personalized ads based on their behavior and the context of the sites they visit. In addition, Apple has tinkered with its privacy feature to allow advertisers more access to data after certain thresholds are met, which has somewhat softened the impact from its original version. It’s also started a paid business messaging platform on WhatsApp in which businesses contact their customers directly through text messages. The company teamed with e-commerce platform Shopify SHOP to work with merchants through Facebook and Instagram, providing them with tools to target customers directly and quantify the effectiveness of their ads. In the wake of last year’s troubles, Meta reworked its digital advertising model to connect directly with advertisers. At the same time, rival TikTok, known for its popular short-form videos, was surging in popularity and attracting advertising. It was also caught off guard by the damaging effects on its advertising revenue from privacy protection features that Apple AAPL introduced in 2021, known as App Tracking Transparency, which made it more difficult for third parties to collect data from customers. Meta was blindsided by changing economic conditions driven by high inflation, interest-rate hikes, and changing customer behaviors after ramping up staffing and spending during the pandemic years. For the full year, revenue dropped by 1% to $116.6 billion from $117.9 billion in the prior year. Meta posted $32.2 billion in revenue in the fourth quarter of 2022, down 4% from the $33.7 billion it registered in 2021. ![]() Meta shares fell from a high of $379 in August 2021 to a low of about $88 by October 2022, a 77% drop. Meta’s recent stock gains mark a stunning comeback after an equally surprising reversal of fortune to the downside in 2022 as the company reported its first-ever sales decline amid serious challenges to its business model.
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