Facebook is in trouble and why does it matter to eCommerce businesses


The latest earnings call by the social media giant was less than stellar pointing to the changing tide in the online advertisement space. What does it mean?

On Wednesday, February 2, 2022, Facebook held their Q4 earnings call. This was not Facebook’s finest hour. They forecasted that the revenues for 2022 to be $10 Billion less than the previous year. As a result, the stock plummeted 26% in the course of 24 hours. This in turn knocked $230 Billion off Meta’s Market cap. 

The loss in projected revenue comes from a number of headwinds. Facebook had been the target of much bad press due to its business practices such as the Cambridge Analytica scandal in 2016 and most recently the EU is pushing a law to limit the transfer of user data from Europe to the US. However, the main cause seems to come from Apple’s new Privacy Feature. 


Opt-in First


Apple’s latest IOS 14.5 update brings many new features meant to protect iPhone customers. The most newsworthy one is App Tracking Transparency. In the past, app developers were able to track user data as a default. The user had to proactively opt-out of tracking. Then, this data could be sold to third party companies who would use data coming from many different sources to build a mosaic of user behavior and make educated guesses in serving them targeted ads. However, the new way of working requires each app developer to give their users the choice to opt-out in the very beginning. If the user opts out, the app developer cannot track nor sell this data at all.


It hit a nerve


The biggest critic of this update has been Meta. They argue that it will make it more difficult and expensive for ad networks to target the users. Consequently, it will hurt SMEs which rely on highly targeted ad campaigns. 


Why does this matter in the grand scheme of things


In general, when compared with its $85 Billion ad revenue, $10 Billion does not seem like much. However, the online ad space depends on tracking data as its fuel. Without it, it is like playing darts while blindfolded. It is important to note that 96% of Facebook visits are made on smartphones and even at 14% IOS usage, things do add up. Not only do you lose data from a major source, a major consideration is in the demographics. Those who use iPhones tend to earn more and spend more


What now?


With the new IOS update and the depreciation of third party cookies by Google, this will no longer be a viable source of customer data. Luckly, there are alternatives. Many services are utilizing the use of zero and first party data to build their customer profiles. Zero party data are information that is voluntarily given to a business by the customer like their email addresses. First party data are those gathered by the business as a visitor goes around a website. 

Advertising service providers often have incomplete pictures of a customer as the sources of their data are often rather limited. As a result, the metrics from one service may differ from those from another. In general, zero and first party data allow the business to gather a huge amount of information about a given visitor which in turn is more accurate than those from third parties. This includes the customer’s interests and preferences. This way, a business can utilize many different channels to serve them product recommendations that the customer desires.   

Since 2012, SALESmanago has been in the forefront by providing Marketing Automation services to brands across the globe. Our Customer Data Platform is the perfect solution to this change in the online advertisement space. Our AI powered no-code Marketing Automation Software has been used by major brands like New Balance and Vodafone to make marked increases in email open rates and lead generation. Our CDP is a one stop shop where data is gathered, analyzed and recommendations based on those data are made. 

The platform will take a look at a customer’s behavior on your website as well as information gathered via surveys and build a 360 degree customer profile. After analysis by an AI driven engine, it will recommend the products that will interest them as well as the channels to use and the optimal time to reach out to them. As a result, you have a hyper personalized and desirable customer experience.

External Posts:

Don’t depend on third party services nor Facebook to help you convert visitors to customers. Take charge of your own destiny with SALESManago. For more information, visit https://www.salesmanago.com/


SALESmanago is the only no-code, AI driven CDXP (all in One Customer Data Platform & Customer Experience Platform) used by 2000+ midmarket and large Enterprises in 50 countries including Starbucks, Vodafone, Lacoste, New Balance, Victoria’s Secret and many other global brands. Financial Times ranks SALESmanago as the fastest growing marketing automation platform in Europe.

SALESmanago is harnessing the full power of first- and zero-party data, combining advanced analytics and AI Hyperpersonalization to deliver highly configurable personalised experiences, across a comprehensive range of natively built and integrated marketing execution channels.

The company is based in Kraków, Poland and employs 300 highly experienced consultants, data scientists and engineers. SALESmanago works internationally via an extensive network of over 1000 reselling partners.

Get started with SALESmanago with 2 month free Proof of Concept. Register at www.salesmanago.com

Why Conversion Rate Is the Most Important Metric in eCommerce
Why Conversion Rate Is the Most Important Metric in eCommerce

    In one of our earlier insights, we showed how the rise of the CLV-ROI approach is changing eCommerce business models. But let’s get right to the point of this marketing insight: Turning your customers into loyal fans requires you to first convert visitors into customers. This is why we understand conversion rate (CR) […]

Smart eCommerce is shifting towards a CLV-ROI approach
Smart eCommerce is shifting towards a CLV-ROI approach

    The last touch ROAS is still dominating the attention of marketers, as a crude, but simple measurement tool.  In the new privacy-dominated eCommerce landscape, this will have to change. Metrics supporting ROAS will suffer from a lack of tracking data and very limited ways of device identification. Lack of third-party cookies will only […]

SALESmanago launches The first Zero-Party Data focused Customer Data Platform to help eCommerce Combat Climate Change and help with Data Privacy
SALESmanago launches The first Zero-Party Data focused Customer Data Platform to help eCommerce Combat Climate Change and help with Data Privacy

    SALESmanago, a leading end-to-end martech platform used by over 3000 mid size eCommerce businesses including New Balance, Converse or Vodafone relaunched it’s Customer Data Platform with a dedicated set of features enabling businesses to gather, manage Zero Party Data. These are data voluntarily left by the customers. They are widely known as the […]

7 ways zero-party data enable your company to reduce its carbon footprint and turn eCommerce into ECOmmerce
7 ways zero-party data enable your company to reduce its carbon footprint and turn eCommerce into ECOmmerce

    Companies’ carbon footprints have become an increasingly important issue to customers, and businesses are frantically looking for ways to reduce their size. We identified 7 ways in which zero-party data may be of help in your efforts to make your business model more sustainable—both in terms of business sustainability, and the environment. Turning […]