$3 Billion in China-Linked Ads Raises Questions About Meta’s Ad Oversight
A new Reuters investigation claimed that Meta generated more than $3 billion in revenue from China last year by running scam advertisements linked to illegal gambling, mature content, and other prohibited content. That amount accounted for almost 19% of the company’s $18 billion in total advertising revenue sourced from China during the same period. Reuters previously reported that fraudulent ads accounted for roughly 10% of Meta’s global revenue.
The report also cites an internal Meta review indicating that close to 25% of ads displayed across its platforms originated in China. Many of the deceptive ads were aimed at users in Taiwan, the United States, and Canada.
In response to widespread ad fraud, Meta initially created a dedicated task force focused on Facebook, Instagram, and WhatsApp. By the end of 2024, the group had reportedly cut the volume of scam ads by nearly half. According to Reuters, the task force was later dissolved following an intervention by Mark Zuckerberg, after which fraudulent advertising reportedly surged again in the following months.
According to the investigation, Meta was aware of the severity of the ad fraud issue but chose not to take stronger action because of potential revenue losses.
Responding to the report, Meta spokesperson Andy Stone told Reuters that the anti-fraud task force was never intended to be permanent and that Zuckerberg did not order its closure. Stone added that the Meta CEO instructed teams responsible for handling scams and other high-risk threats to intensify their efforts to reduce fraud across Facebook, Instagram, and other Meta platforms.
