A flood of internal Facebook documents showing up in the news media is telling us plenty about angst inside the company caused by toxic content and competitive threats from other services. And judging by this tweet from Facebook PR, more such revelations are on their way, a sign of how well organized these leakers are. But a bigger challenge for Facebook than the one posed by the leak storm may be the Apple-triggered pressure on Facebook’s powerful advertising sales engine.
Two news reports today—one in The Information and one in the Financial Times—provide new evidence showing how Apple’s privacy-driven restrictions on ad targeting have shaken up the digital ad market to Facebook’s detriment. The Information’s story quoted two different online merchants saying they had cut their ad spending on Facebook and other digital ad platforms in the past few months by 20% to 50% because of the ad-tracking restrictions. “It has become a lot harder to track where the [customer] acquisition might come from,” Tarun Singh, co-founder of healthy-snack merchant Campus Protein, told my colleague Malique Morris.
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