Meta says ad revenue growth slows as EU's less‑personalized ad rules take hold

During Wednesday’s earnings call, Meta revealed that its advertising‑revenue growth has slowed since the EU introduced its "Less Personalized Ads" framework at the beginning of the year.

The measure, aimed at strengthening digital privacy, allows users to receive advertisements that are not customized based on their browsing history. It expands on prior rules like the General Data Protection Regulation and responds to rising calls for tighter personal‑data control.

Meta noted that while its total revenue remains robust, the rate of ad sales in Europe has eased relative to earlier quarters. The company linked this deceleration to a diminished capacity to employ granular user data for targeting, which is central to its ad model.

Marketers have historically depended on exact audience segmentation to boost click‑through rates and ROI. Because the new regulations curb the detail of data usable for targeting, a number of advertisers are moving to wider, context‑based placements that generally yield weaker performance figures. This shift impacts Meta’s main services such as Facebook and Instagram, where personalized feeds have long powered revenue.

Analysts observe that Meta’s situation reflects a broader pattern in the digital‑advertising landscape, with regulators in multiple regions tightening data‑use policies. Firms are reacting by channeling resources into AI‑driven contextual targeting and testing pricing structures that sidestep reliance on personal data.

Going forward, Meta said it will keep a close watch on the regulatory climate and adjust its advertising offerings to stay effective while honoring user‑choice settings. It intends to introduce fresh ad formats that focus on relevance without depending on individual profiling, a step that may influence its revenue path in upcoming quarters.