Meta’s Facebook Spirals Downward As Advertisers Abandon Tech Giant

It appears as if the reckoning of Facebook is far from over as new reports claim advertisers are abandoning the tech giant. From job cuts to policy changes, Facebook’s misery continues as we speak.

And it wouldn’t be wrong to say the company is predicted to suffer a heavy downfall in terms of its market share too. This is literally the first time ever that we’re hearing so much negativity surrounding the app and one can’t help but wonder what’s next.

As it is, ad sellers in the digital world are going through a rocky phase but when you look at the problems surrounding Meta, the issue here is worse. Now, some analysts are going as far as releasing their predictions about how hard it would be for Meta to recover from a phase like this.

The forecast for the app for Q2 is zero growth, which is another devastating first for the firm. Moreover, we recently heard the company CEO, Mark Zuckerberg refer to the ongoing crisis as one that’s beyond worse and nothing like the past.

The company has announced a slowed-down pace for hiring and has even excused itself from hiring more engineers.

Clearly, it’s not just Facebook that is witnessing the negative impacts of the ad sector but another leading tech like Google, Snap, and even Twitter are feeling the pressure with predictions of less growth for 2022.

But there is a clear difference here when we take Facebook into consideration. Meta is embedded in a storm and that’s why more and more advertisers are steering clear of the platform for the first time.

This firm used to be one that held special reliance on its dollars and despite facing all the scandals, they used to always pull through somehow.

Meta has been predicted to lose a major chunk of its client spending as some of the top ad forecasters are eyeing which places to cut down from and this company is at the top of the list.

Leading tech analysts believe the firm’s downfall is near, despite the fact that it benefitted immensely from years of substantial growth.

In 2021, Meta saw 37% growth and now, forecasts made by analysts predict a 16% posting from the firm but only time can tell what the actual figure is as we need to wait for that.

To that, a spokesperson from Meta shared how the firm is busy focusing on its long-term goals as they believe their platforms serve as a great place for businesses to grow and make connections with the world.

Let’s take a look at what went wrong or what is really targeting the app in a negative way. For starters, the current business model in place is being jeopardized from various angles.

Apple’s new privacy regulations aren’t helping Meta one bit and Facebook is feeling the effect as advertisers can’t target or measure how effective their ads are.

Next up, Facebook is yet to recover from the way its reputation was tarnished thanks to the boycott by advertisers in 2020 regarding how the firm was handling the issues of misinformation.

At the same time, so many advertisers are having a hard time comprehending where corporate money is being placed, while eying the ESG criteria.

Another major concern is related to Meta’s great reliance and promotion of the Metaverse. And let’s not forget that many are still clueless about where advertising will stand on the platform so that’s a major uncertainty bothering plenty.

Therefore, it makes sense why so many advertisers are looking past Meta as the number of headwinds making their way against the app.

H/T: Insider

Read next: Meta and Google’s Ad Spend Duopoly to Dip Below 50% in 2023 as TikTok Provides Stiff Competition
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