Broadening audience targeting definitions can lead to performance dips.
Owing to ad targeting-related headwinds, Facebook has cautioned its investors of a revenue slowdown in the second half of 2019 through 2020. Such headwinds could directly affect Instagram too, given that the two social media share data and a backend advertising platform.
Three interrelated trends currently impact Facebook’s ad targeting and measurement. These are global data protection regulations, focus on privacy at operating system levels, and Facebook’s product changes that enable users to control their data shared by third-party portals. These shifts could cause audience sizes to shrink on Facebook, and by extension, Instagram, notes Carly Carson, director of social at PMG.
However, Instagram’s solid scale across feed and Stories placements could help in shielding the platform. Debra Aho Williamson, principal analyst at eMarketer adds, “Advertisers will continue to use Instagram, simply because consumers continue to use it.”
[3 minute read]