In the wake of Meta’s landmark $17 billion legal settlement on Wednesday, media buyers are cautioning against any abrupt shift in strategy, according to interviews with five agency executives.
Instead, brands and agencies should monitor the situation while keeping an eye on whether or not other social media platforms follow in Meta’s footsteps.
The company, which owns Facebook, Instagram, and Whatsapp, agreed to pay $12.7 billion in settlement fees, which would rise to around $18 billion if its peers at YouTube, Snapchat, and TikTok also implement the new restrictions it plans to adopt, which include a blackout period at night, notification limits during school hours, and a daily time limit of two hours.
One reason for this prudence is that the settlement does not affect the ad-buying mechanisms, according to Jack Johnston, senior director of social, innovation, and growth at Tinuiti.
“This is not an advertising system change today,” Johnston said. “It is a potential audience supply change.”
Much of Meta’s value as an advertising platform comes from its sophisticated ad-targeting. Since it is unaffected in its structure, there is little reason to change course immediately, according to Ankit Jadav, associate director of paid social at Rain.
“Meta’s $18 billion child safety settlement doesn’t touch personalized targeting or our core buying mechanics,” Jadav said. “It’s about teen usage limits, not adtech.”
For agencies whose client base skews older, the settlement is close to a non-event, according to Andrew Becks, founder and CEO 301 Digital. Becks’ clients are largely targeting audiences over age 18, so the new restrictions have little direct impact on his buying operations.
But for brands trying to reach teens, the restrictions could drive up the price of that inventory.
“For brands that do market to younger audiences, this will certainly require a shift in strategy,” he said. “It may also drive costs to reach under 18s even higher, since there will likely be fewer overall ad impressions available from minors due to restrictions in the amount of time they’re allowed to spend on the platforms.”
