Daily Management Review

Zuckerberg bets on digital payments amid growing ads restrictions


Facebook will respond to targeted advertising limitations with new payment and e-commerce technologies across all of its apps and support for social media content creators.

The creation of new payment technologies, including digital currency Deim and the Novi wallet, will form the basis for expanding Facebook's commerce services across its social media apps. These technologies are coming soon, Facebook founder and CEO Mark Zuckerberg told CNBC. 

The company released its first quarter results on Wednesday, 28 April. It attributed the revenue growth to a 30% year-over-year increase in average price per ad, as well as a 12% increase in the number of ads shown, and lowered its 2021 capex forecast to $19-21 billion ($21-23 billion in the previous estimate). The company said it is preparing for "headwinds of ad targeting" related to changes to its user privacy policy. Such changes have already been introduced in Apple's latest iPhone and iPad operating system update. It will make it harder to personalise ads and will have an impact on ad targeting in the second quarter. 

Facebook CEO Mark Zuckerberg, commenting on the first quarter report, said that the company will focus on creating new features for e-commerce. Digital commerce within social media apps, he said, would be a key part of providing users with a "personalised" experience. According to Facebook's CEO, more than 1 billion monthly active users visit the Facebook Marketplace service where they can buy and sell goods. Zuckerberg said e-commerce has become much more important in a pandemic that has accelerated "a shift towards businesses growing online". He added that the imminent arrival of the company's own digital currency, Diem, and digital wallet, Novi, would boost commerce on the company's social networks.

source: cnbc.com