Meta has released a new study highlighting the economic impact of its personalized advertising services in the European Union. According to the study, these tools were linked to €213 billion in economic activity and 1.44 million jobs across the EU in 2024.
The research underscores the significance of personalized advertising for business success, particularly for small businesses that comprise over 99% of companies in the EU. Meta claims that each euro spent on its ads generates €3.98 in advertiser revenues within the region. Additionally, a recent report found that 80% of EU consumers prefer personalized ads tailored to their interests over generic ones.
The study also points out that restricting personalized advertising adversely affects small businesses and consumers by increasing marketing expenses for enterprises operating on tight margins.
A case study mentioned is 'Eliza was here', a Dutch travel company specializing in boutique holiday experiences. The company reportedly used Meta's AI-driven ad technologies to increase travel bookings by more than 40%.
The findings are positioned against broader economic concerns highlighted by reports like the Draghi report and the EC’s Competitiveness Compass, which emphasize Europe's declining share of global GDP and lower GDP per capita compared to the US.
Meta criticizes ongoing regulatory constraints imposed by the European Commission on personalized ads, arguing that such measures threaten jobs and growth at a time when European businesses need more tools to compete globally.
This research was developed with UC Berkeley and published with the US National Bureau of Economic Research, using Eurostat data to analyze how ad effects translate into broader economic impacts.