Meta says ad revenue growth slows as EU's less‑personalized ad rules kick in

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

The EU measure, part of a wider digital‑privacy push, allows users to opt for ads that are not customized based on their browsing history. It expands on earlier rules such as the GDPR and reflects a rising demand for greater personal‑data control.

Meta noted that while overall revenue remains robust, the rate of ad sales in Europe has weakened relative to prior quarters, a dip it linked directly to the diminished capacity to employ detailed user data for targeting—a cornerstone of its ad model.

Advertisers have traditionally depended on fine‑grained audience segmentation to boost click‑through rates and ROI. With the new regulations curbing data granularity, many marketers are moving toward wider, contextual ad placements, which generally yield lower performance figures. This shift impacts Meta’s main platforms, Facebook and Instagram, where personalized feeds have long driven revenue.

Analysts observe that Meta’s situation reflects a broader pattern in the digital‑ad space as regulators worldwide tighten data‑use policies. Firms are responding by investing in AI‑driven contextual targeting and testing new pricing structures that do not rely on personal data.

Looking forward, Meta said it will keep a close watch on regulatory developments and tweak its ad offerings to stay effective while honoring user‑choice options. The company intends to launch new ad formats that prioritize relevance without depending on individual profiling, a strategy that could influence its revenue path in upcoming quarters.