Meta advertisers claim sales are down and costs are up due to glitchy automated system

Meta's advertising algorithm is reportedly facing ongoing issues that have led to a significant surge in the cost of running campaigns on its platforms. Advertisers have noticed a decrease in sales and return-on-ad-spend, while experiencing a threefold increase in cost-per-click and cost per 1,000 impressions. Despite these challenges, Meta has not provided a clear explanation for the rise in costs.

Due to the ongoing issues with Meta's advertising algorithm, which have negatively impacted ad performance, advertisers are exploring rival platforms such as Google and TikTok. These platforms may offer more favorable conditions and better returns on investment, prompting advertisers to reallocate their budgets away from Meta.

The impact of the reported system issues on Meta's ad revenue is expected to become clear by the end of the month when the company releases its first-quarter earnings. Industry experts are forecasting that Meta will report approximately $36.1 billion in ad revenue. The actual figures will reveal the extent to which the algorithm issues have affected the company's financial performance.

Meta has acknowledged that there have been some technical issues impacting ads but has denied that these problems are widespread. A spokesperson stated that the ads system is functioning as expected for the majority of advertisers and mentioned that Meta has recently fixed a few technical issues. They are also investigating additional reports from advertisers to ensure optimal results for businesses using their apps.