Facebook and Zuckerberg Make a Desperate Try

FACEBOOK AND ZUCKERBERG MAKE A DESPERATE TRY

There are many obstacles facing his Meta Platforms (META) - Get Meta Platforms Inc. Report empire, which controls the social networks and messaging services Facebook, Instagram, Messenger, and WhatsApp.

The macroeconomic climate is undoubtedly the first of these challenges. According to many experts, it will be challenging to prevent a recession brought on by 40-year high inflation and an increase in Federal Reserve rates.As a result, households and businesses would cut back on spending and put off big purchases. For Meta Platforms, whose primary source of income is advertising, this is bad.

On June 30, Zuckerberg addressed colleagues, "If I had to gamble, I'd say that this might be one of the worst downturns that we've experienced in recent history."

Add to that Apple's (AAPL) - Get Apple Inc. Report choice to allow iPhone and iPad owners to choose which apps they want to use to track their behaviour.The decision will cost Meta $10 billion in revenue by 2022, the company has previously informed.Indeed, distributing targeted adverts to those people becomes challenging if the social media juggernaut cannot track a sizable portion of its users.

One of Meta's greatest issues with advertisers is to serve each user advertising that are likely to interest them based on their search history and activity on the group's platforms.

Having a Battle for Marketing Dollars

Until the group finds a solution, Meta can claim that these two issues — the recession and privacy protection — are cyclical (in particular to circumvent the obstacle posed by Apple).

Even yet, it will be challenging for it to avoid the third barrier, TikTok.The popularity of short videos is growing. There are a lot of Gen Z, Millennials, and even Gen X attendees. The trendy social network makes the Chinese company ByteDance subsidiary a direct competitor for marketing funds.

By the end of 2022, the platform, where users publish films that are frequently under a minute long, is expected to generate more than $11 billion in revenue. According to a recent forecast from Insider Intelligence, users in the United States will contribute $6 billion, or more than half of that total.