Created

Apr 3, 2025 10:16 AM

Created by

Matt Farnham

Meta has introduced ‘Core Setup’ data restrictions for financial services advertisers on Facebook and Instagram in Australia.

Aimed at reducing scams, these restrictions punishes legitimate financial businesses operating within the law.

What Are Meta’s ‘Core Restrictions’?

Meta now categorises financial services as high-risk, limiting how these businesses can collect and use data through Meta’s Business Tools. The key changes include:

• Blocked Custom Parameters – Advertisers can no longer use certain data fields, affecting audience segmentation.
• Stripped URL Data – Anything other than the domain cannot be used.
• Reduced Custom Audience Functionality – Retargeting and lookalike audiences relying on restricted data may not work.
• Disruptions to Advanced Matching – Automated matching for personalisation is no longer available.

These restrictions affect financial services companies regardless of their licensing or compliance status.

The Unintended Consequences

While targeting fraudulent ads is necessary, Meta’s broad restrictions fail to distinguish between scam advertisers and legitimate financial businesses. As a result, compliant businesses face:

• Declining Ad Performance – Reduced audience targeting can lower conversion rates and increase costs.
• Difficulty Preventing Fraud – Financial services use Meta’s tools to detect fraudulent users; restrictions make this harder.
• Competitive Disadvantages – With Meta imposing strict controls, businesses may shift ad spend to Google, LinkedIn, or other platforms. This has definitely caused us to shift our focus and our money.

A Better Approach?

Instead of applying blanket restrictions, Meta could:

• Implement enhanced vetting to detect scam advertisers.
• Work directly with ASIC (Australian Securities and Investments Commission) to verify licensed businesses.
• Provide exemptions for businesses with an Australian Financial Services Licence (AFSL).

Workaround: Setting Up Custom Events for Page Views

One way to regain some tracking functionality is by using Meta Pixel custom events for tracking page views to specific pages. Here’s how:

1. Create a Custom Event in Meta Events Manager

1. Go to Meta Events Manager.
2. Select the Pixel you want to use.
3. Click Custom Conversions and then Create Custom Conversion.
4. Name the event (e.g., "Loan Application Page View").
5. Under Rules, select URL Contains and enter the page URL (e.g., "/apply-loan").
6. Click Create.

2. Use the Custom Event in Ad Targeting

• In Ads Manager, create a new Custom Audience based on the new event.
• Use this audience for retargeting campaigns.

As a financial services marketer

With extensive experience leading financial marketing campaigns, I have firsthand knowledge of how data-driven advertising fuels financial services growth. These new restrictions disrupt established marketing strategies, making it harder for licensed institutions to reach the right audiences while failing to address the core issue of scam ads. Meta must refine its approach to balance fraud prevention with fair access for legitimate businesses.

Meta’s ‘Core Restrictions’ may have been introduced to combat scams, but they risk damaging compliant businesses by reducing ad effectiveness and blocking legitimate data collection. Financial advertisers should explore alternative tracking methods and consider pushing for a more refined approach from Meta that differentiates between legitimate businesses and fraudsters.

Matt Farnham is an award-winning senior marketing leader with more than a decade of experience in brand, communications and customer engagement. His work has focused on helping organisations build trust, strengthen customer relationships and drive sustainable growth, particularly in highly regulated industries. In 2024, he was named Future Leader of the Year at the Australian Marketing Institute Marketing Excellence Awards. He writes about brand strategy, marketing effectiveness and customer behaviour at mattfarnham.au.