Zuckerberg's Shrunken Empire
Bloomberg Businessweek US|November 21 - 28, 2022 (Double Issue)
If it wants to build the metaverse, Meta first has to fix its once-mighty ad business
By Alex Barinka, Gerry Smith
Zuckerberg's Shrunken Empire

There are many reasons for the dire situation at Meta Platforms Inc. The company, which has lost two-thirds of its market value this year and cut 11,000 jobs on Nov. 9, has been battered by damaging news about the political and social impact of Facebook, Instagram and WhatsApp. Investors are skeptical of Chief Executive Officer Mark Zuckerberg’s plans to pivot from social networking to the metaverse and worried about rising rivals such as Bytedance Ltd.’s TikTok. And that’s to say nothing of the stresses on the broader economy and the digital advertising market.

But one factor looms above the rest: the changes to Apple Inc.’s privacy policies that have shaken the foundations of the targeted advertising industry. “Meta and lots of other tech companies are hiding underneath this big, gray cloud that’s covering the economy as a whole and sort of using that as a way to hide the reality that Apple is probably doing the most damage and is putting the tightest squeeze on businesses at the moment,” says Max Willens, a senior analyst at Insider Intelligence Inc. Meta’s ability to recover rests largely on finding ways to operate in this new environment.

Zuckerberg’s pitch to advertisers has long been that his company can guarantee that their marketing will reach the right users at Facebook and Instagram. Meta has used the data it collects about its users to help marketers pinpoint those with specific characteristics—for instance, identifying people who resembled their existing customers in key ways—and sell them specific products.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEK USView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023