In 2024, Meta generated over $160 billion in advertising revenue—comprising more than 95% of its total earnings—illustrating the immense value it derives from its advertising business. At the core of this system is behavioral profiling, the practice of collecting and analyzing a vast array of data points about users across Facebook, Instagram, and other online spaces. This includes not only the information users provide directly but also inferred data compiled through their browsing patterns and interactions.
Each digital profile includes demographic, behavioral, and geographic indicators, combined with device data and activity history. This information allows Meta’s AI to build detailed user portraits, which advertisers then use to target specific audiences. Ad targeting based on these profiles has proven lucrative, but it has also raised serious concerns around discrimination, lack of consent, and harm to vulnerable individuals.
Proxy Targeting: Bypassing Restrictions with AI
Meta’s profiling system relies heavily on the use of proxies. When an advertiser lacks direct access to a characteristic they wish to target—such as age, gender, or ethnicity—the platform’s algorithms can infer similar traits from patterns in other user behaviors. For instance, if someone repeatedly clicks on certain types of content, the system can learn to associate that action with various inferred traits, even if those traits are sensitive or protected by law.
This practice introduces risk, as proxies can functionally circumvent data protection laws. While advertisers and platforms are technically barred from targeting based on protected characteristics, proxies can achieve similar outcomes, often without the user ever knowing. As a result, ad targeting through proxies may indirectly lead to discrimination—whether through oversight or intentional manipulation.
Inequities in Ad Policies: Gambling Ads vs. Public Awareness
A particularly stark contradiction exists in how Meta handles gambling-related advertising. According to the Open Rights Group (ORG), while gambling operators enjoy a relatively seamless process to publish ads—even for “social casino” games that mimic real gambling without monetary payouts—public health messages warning about gambling risks face heightened restrictions.
As outlined in the report Profiling by Proxy: How Meta’s Data Driven Ads Fuel Discrimination, these awareness campaigns are often flagged as “political” content. This classification subjects them to extensive identity checks, disclosures, and listing in Meta’s Ad Library. Ironically, the report notes, “taking out an ad to push for political action on problem gambling has more conditions and restrictions attached than gambling ads.”
Keith Scott Whyte, founder of Safer Gambling Strategies LLC, highlighted the broader problem: “These tech platforms are not regulated by gambling authorities, yet they offer powerful tools to gambling operators. That disconnect allows harm to flourish in the shadows.”
Meta’s Updated Rules on Gambling Ads
In response to mounting scrutiny, Meta recently revised its policies for gambling-related ads. Effective immediately, all such promotions—across Facebook and Instagram—require prior approval via Meta’s Business Suite. Advertisers must submit proof of a valid gaming license, specify their operational role (e.g., operator, affiliate), and provide English-language documentation, including screenshots of their websites or apps.
Furthermore, content creators now fall under the same regulatory umbrella. If an influencer posts a gambling ad themselves, they must undergo the full approval process, including documentation of their commercial agreement with the gambling operator. This move aims to close existing loopholes in influencer marketing and ensure greater accountability.
A zero-tolerance stance has also been adopted regarding underage audiences. Ads promoting gambling, even those for free-play social casino games, must explicitly exclude individuals under 18.
A Public Health and Privacy Crisis
Beyond regulatory issues, the ORG report raises ethical and public health concerns. Meta’s tracking tools, such as Meta Pixel—often embedded in gambling websites—collect behavioral data without explicit user consent. Even visiting a single gambling site can trigger a cascade of targeted gambling ads on Meta platforms, including for users with known gambling addiction histories.
The use of such tools to infer user value and predict spending habits borders on exploitation. “Very in-depth profiles of individual users and their potential to spend could be created using the data shared via the Pixel,” said Anna Dent, author of the ORG report. “It’s hugely concerning.”
With the introduction of generative AI into ad delivery systems, these risks could escalate. The opaque nature of profiling means most users remain unaware of the extent of data collected and how it is used.
Pushing for Change: User Rights and Transparency
Despite user discomfort and increasing legal challenges—such as the UK lawsuit by Tanya O’Carroll, which forced Meta to stop using her data for targeted ads —most users lack practical tools to reject profiling. The right to object exists under UK GDPR, particularly for direct marketing, but enforcement remains limited.
The ORG recommends a new direction for digital advertising. Key steps include:
- Ensuring meaningful user consent for targeted ads and offering a clear opt-out mechanism.
- Enhancing ad transparency, expanding access to Meta’s Ad Library, and applying higher disclosure standards across all ad categories.
- Promoting contextual advertising that does not rely on behavioral profiling.
- Encouraging interoperability and user-switching options to empower consumers to leave exploitative platforms without sacrificing their networks and digital presence.
As Meta continues to dominate the adtech landscape, the debate over user profiling and targeted advertising is intensifying. Balancing profit motives with privacy rights and ethical standards remains one of the most urgent challenges of the digital age.
Source:
‘’Profiling by Proxy: How Meta’s Data Driven Ads Fuel Discrimination’’, openrightsgroup.org, July 01, 2025.
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