Starting in January 2025, Meta will introduce new data-sharing restrictions that could significantly impact businesses in the health and wellness and financial services industries. Through our partnership with Meta, here’s what we know so far:

What’s Going On

Meta collects data from websites and apps using tools like the Meta Pixel and Conversions API. This data includes user actions such as page views, purchases, add-to-carts, and other interactions. Meta evaluates how this data is shared and categorizes data sources (exp: websites and apps) based on their content and services to determine appropriate data handling practices.

While Meta has always monitored and categorized data sources, the way these categories are defined and the restrictions applied to them are changing. Data sources are now being categorized more specifically, and as a result, some may fall into categories with stricter restrictions, limiting their ability to track user activity and optimize advertising campaigns.

What This Means

Not every brand will be affected the same. Some categories may face minor restrictions, such as limited data sharing, while others could experience full bans on event tracking in certain regions or globally.

Tracking Limitations

Brands in restricted categories may no longer be able to use the Meta Pixel or Conversions API to track lower-funnel actions like purchases or add-to-carts. While these events can still be tracked internally using tools like Google Analytics, the data cannot be shared with Meta for ad targeting or optimization.

Changes to Campaign Optimizations

Without lower-funnel tracking, brands may struggle to optimize Meta ad campaigns for goals like purchases or sign-ups. This could force a shift to upper-funnel objectives such as awareness (reach, impressions) or engagement (likes, comments).

What You Can Do Now

• Confirm If You’re Impacted: Confirm with your Meta Team or Agency Team to fully understand any potential effects on your Meta account. You can also verify your categorization by logging into Meta’s Events Manager. In the data source settings, review your data source categories to determine if your domain or data source will be affected based on its categorization.
• Maximize Lower-Funnel Demand Capture: Even with potential workarounds, we expect it will become harder for affected advertisers to drive conversions. With this in mind, advertisers should think about easing their performance goals to capture as many sales as possible while they can still optimize effectively at the lower end of the sales funnel.
• Develop Performance Benchmarks: Start testing mid and upper funnel optimization now to establish performance benchmarks. By experimenting with different mid and upper funnel events while tracking is still possible, advertisers can identify: 1) which event optimization acts as the best proxy for driving lower-funnel outcomes, and 2) the expected impact of these optimizations.
• Strengthen Alternative Strategies: Meta’s data sharing restrictions will affect multiple aspects of how advertisers currently use the platform in their marketing programs. If you rely heavily on Meta to drive results, it’s important to enhance your strategies across targeting, measurement, channel presence, etc. 

Besides the strategies mentioned above, WITHIN has also developed unique approaches that can help minimize the impact on your performance. These approaches are highly customized and specific. If you’re interested in learning more about these options, send us an email so we can discuss your specific needs!