Instagram Cuts Dependence on User Data-Without Cutting Into Its $26 Billion Ad Revenue

  • Date: 23-Jan-2022
  • Source: Inc.
  • Sector:Economy
  • Country:Middle East
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Instagram Cuts Dependence on User Data-Without Cutting Into Its $26 Billion Ad Revenue



Meta, the new face of Facebook, has been scrambling for months to develop an ad strategy that doesn't rely on users' personal data following the parade of legal battles that keeps marching on. After jumping through hoop after hoop, Facebook may have finally found the golden ticket to generating billions in revenue without digital privacy issues, user data-or ads at all. 

Instagram, a child company of Meta, is testing something it's never done before, which will give users something they've never had before: a way to earn a steady, fixed income from the platform. In other words, influencers will no longer depend on external resources to make money-but directly from the platform. 

The new feature-and revenue stream-comes as a result of Facebook's failed attempt to find a way to target audiences without audience tracking after losing its battle over privacy and sinking millions into it in the process. What it found is that it didn't need a way to skirt ongoing privacy issues as much as it needed a way to earn revenue without ads. And now, that's exactly what it's trying to do. 

Now, Facebook is testing out yet another new feature on Instagram that would create a new