Facebook’s Trust Crisis: The Real Impact on Advertisers

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Media Post | May 21, 2018 - Facebook has trust issues—trust from consumers, trust from publishers. And now, in light of Facebook’s most recent policy changes, the social giant is on the brink of alienating its core advertiser constituency as well.

This year, Facebook has announced multiple new restrictions in advertising data usage on its platform. The recent elimination of Partner Categories—targeting options provided by Facebook's third-party data partners—represents the most dramatic shift. In the past, many brands have relied on Partner Categories to target Facebook users with offline purchase data from companies like Acxiom, Experian and Datalogix. Loss of this option within the platform fundamentally changes advertisers’ relationship with Facebook.

Overreliance on Facebook—whether for traffic or targeting—is a dangerous thing.

Facebook’s third-party data restrictions are a reaction to the now-infamous Cambridge Analytica data breach. In light of the scandal and subsequent consumer backlash, Facebook is looking to shore up vulnerabilities by limiting all applications where its consumer data is shared outside its walls.

While drastic measures might be understandable in light of the breach, the realizations that these changes are sparking among advertisers are eerily similar to those had by publishers earlier this year, when Facebook announced it would begin prioritizing the posts of family and friends over those of publishers. The realization, in a nutshell: Overreliance on Facebook—whether for traffic or targeting—is a dangerous thing.

 

Written By:

 Chao Liao Senior Director of Brand Strategy Nativo

Chao Liao
Senior Director of Brand Strategy
Nativo


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