- The creator of Da Vinci Eye's drawing app, Samuel Gherman, had to cut his Meta Platforms Inc (NASDAQ:FB) Facebook ad spending targeting Apple Inc (NASDAQ:AAPL) iPhone users, the Information reports.
- Gherman cut the ad spend by about 90% to less than $100 per day beginning May 2021.
- The cost of attracting a single new Da Vinci Eye customer using Facebook ads rose beyond Gherman's willingness to pay.
- Apple's privacy changes made it difficult for Facebook advertisers to target ads to certain iPhone users and measure the outcome of ad campaigns. The cut affected his revenue leaving him with no choice.
- However, recently the cost of acquiring a new customer unexpectedly began to fall, and the performance of his ads got better.
- He has since ramped up spending on Facebook ads back to about $1,000 per day for the drawing app and another app he started last year to help artists create murals on buildings.
- The ad costs continue to be highly volatile but have improved.
- Gherman now looked to spend as much money as possible as long as it was profitable.
- Price Action: FB shares traded higher by 0.79% at $215.14 premarket on the last check Thursday.
