Meta Platforms Inc (NASDAQ: META) has announced plans to discontinue its authorized sales partner program by July, transitioning towards a direct engagement model with advertisers.
The company aims to standardize its operational framework globally through this change. Authorized Sales Partners (ASPs), which act as local extensions of Meta's sales teams in various countries, will be affected by this shift.
Meta emphasized its commitment to ensuring a seamless client transition as part of its ongoing evaluation and adaptation of client service methods, the Wall Street Journal reports.
Entravision Communications, a key participant in Meta's ASP program, revealed that Meta communicated its intentions to phase out the program on March 4.
Entravision, representing Meta in particular Central and South American countries, Iceland, and Mongolia, noted that the ASP program contributed to approximately half of its total 2023 revenue.
In response to Meta's decision, Entravision is reassessing its operational strategies and cost framework to adapt to the forthcoming changes.
This move by Meta reflects its effort to streamline operations and enhance direct interactions with advertisers across the globe.
Wall Street analysts have named Meta their top internet pick, praising CEO Mark Zuckerberg's commitment to AI, with investments such as the Nvidia Corp (NASDAQ: NVDA) H100 GPUs marking a significant financial commitment. Analysts appreciate the positive reception from the AI community towards Meta, a contrast to the feedback received for its metaverse strategy in 2021.
Investors can gain exposure to Meta via The Communication Services Select Sector SPDR Fund (NYSE: XLC) and Fidelity MSCI Communication Services Index ETF (NASDAQ: FCOM).
Price Action: META shares traded higher by 1.26% at $496.50 premarket on the last check Wednesday.