Meta's ad revenue growth has slowed since the European Union introduced its Less-Personalized Ads models at the beginning of this year, according to an earnings briefing.
The models give European users the option to see ads that rely on less of their personal data. Personalization means targeting ads using what a platform knows about you: what you click, follow and linger on. Advertisers pay more for that precision, so every user who opts down makes Meta's inventory a little less valuable.
The briefing did not come with a breakdown of how much of the slowdown the new models explain. That matters, because a slowdown since January does not by itself separate the effect of the change from everything else that moves ad budgets, from the economy to competition for advertisers. The timing points at the models, but the size of their share is not established.
The pattern is familiar. Apple's 2021 privacy prompt on iPhones let users refuse cross-app tracking, and Meta said it cost the company about $10 billion in 2022. Europe's version works differently: it is a regulator-backed choice inside Meta's own products rather than a platform rival's gatekeeping.
The open question is how many Europeans actually pick the less-personalized option. If few do, the revenue drag should fade. If many do, Meta has a lasting gap in one of its largest markets, and other regulators will be watching the numbers.