The company is embroiled in a “very deep, philosophical competition” over the future direction of the metaverse, Zuckerberg said in internal comments reported by The Verge. Andrew Rosen, founder and principal of media analyst company Parqor, says “a combination of trends of users moving away from Meta properties to TikTok, and Meta having a more difficult time monetizing them post-ATT has forced Meta to iterate its product design.”īut Meta CEO Mark Zuckerberg was ruing Apple for more than its changes to how apps can track their users. The change hit Meta properties particularly hard, and has dealt the company a one-two punch in combination with the rise of TikTok, which is stealing Meta’s users-and therefore its advertisers, who want their products to be seen by the most people. Alphabet’s chief business officer, Philipp Schindler, admitted to “pullbacks in spending by some advertisers” due to uncertainty within the industry. “We’re … continuing to face targeting and measurement headwinds such as Apple’s iOS changes, which we believe are contributing to the growth challenges across the digital advertising industry,” said Meta’s chief financial officer Dave Wehner, who post-call moved to become the company’s chief strategy officer. Meta could lose $10 billion in ad revenue this year because of the user prompt on Apple devices. The ability to opt out has always existed, but has traditionally been less explicit than Apple’s unavoidable popup. It allows users to either consent to, or deny, apps tracking them and reporting data back to advertisers. Snap, Twitter, and Meta’s results all highlighted one of the existential issues for online advertising and user tracking: The changes introduced in iOS 14.5 that allowed users to opt out of the ability to be tracked by big apps.Īpple’s introduction of app-tracking transparency (ATT) empowers end users-but leaves apps shorn of access to user data that they had grown accustomed to profiting from. While all the apps compete in a race to be copycats of each other, they face other big issues. But the shift to a purely algo-sorted feed disempowers creators.” “Platforms need to double down on investing in content and nurturing their creators from first viral hit to global star. “Strategically, it’s a mess,” says Owens. It all spells concern for users, who are seeing the panoply of different apps they use transmogrify into a number of Frankenstein’s monsterlike super apps that look and act principally the same as each other, just with a different logo. Instagram chief Adam Mosseri has already decided to dial back some of the more significant changes to the app after a public outcry, but the company is still likely to pursue its strategy of promoting Reels. “Now they’re playing catchup-and users seem set to have not one but three apps dominated by vertical video.” “Meta doubtless had data showing that friends and family were no longer the main sources of engagement on Instagram and Facebook-but didn’t quite dare make the leap to making Instagram’s Explore tab the homepage,” she says. And that recognition is one that other companies-key among them Meta, with Instagram-are trying to follow. “TikTok’s great innovation was realizing that social media no longer has to be social, just media,” says digital strategist Jay Owens. From Apple comes the threat of changes that could impact the others’ customer reach and competition in the metaverse. TikTok’s user base rose to a billion users within five years, far outstripping any previous app, including Meta-owned Facebook and Instagram, both of which took eight years to reach the same goal. The two firms loomed large over the others’ results because of their increasingly integral role in the world of tech. And in every earnings call, two names kept coming up: Apple and TikTok. This time though, as they announced their second quarter results in recent days, large tech companies have been speaking of stagnant growth or declines and revising their future forecasts in the face of what they expect to be a challenging economic downturn. Over the course of a little more than a week, Snap, Alphabet, Microsoft, Meta, Spotify, Amazon, and Apple all announce to investors how well they’ve performed.įor years, it’s been a tale of untrammeled success, with earnings, profits, and user numbers generally heading in one direction: up. Every three months, Wall Street watches with anticipation for bumper results from Big Tech companies.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |