Silicon Valley’s Realtors, Like Its Bankers, Are Having a Tough MonthRead More

Facebook's Andrew Bosworth. Photo by Bloomberg

The Flaw in Facebook’s VR Ad Defense

By  |  July 6, 2021 11:00 AM PDT
Photo: Facebook's Andrew Bosworth. Photo by Bloomberg

Facebook’s initial rollout of ads in virtual reality apps hasn’t even begun in earnest, yet we’re already seeing the company’s head of AR and VR adopt a defensive stance. Facebook needs to face up to the reality that if it wants to put ads in games that people have paid for, they’ll have to cope with a backlash.

To recap, Facebook announced in June plans to start testing VR ads, beginning with a trial run in the multiplayer game Blaston, which costs $10. The news sparked such pushback that Facebook relented and instead will try the ads in a free VR game. All good, so far. But then last Thursday evening, Facebook Reality Labs VP Andrew Bosworth hit back with some criticisms of the critics—but with a somewhat flawed argument.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Exclusive policy
TikTok Shifts Into Damage Control Mode
A TikTok advertisement at Union Station in Washington, D.C., on Wednesday, March 22, 2023. Photo by Bloomberg.
TikTok and some companies that work with the popular app have shifted into damage control mode after a rancorous Congressional grilling of TikTok CEO Shou Zi Chew failed to allay lawmakers’ concerns that its Chinese parent, ByteDance, poses a national security risk. Golin, a major public relations firm that hires creators on behalf of brand clients, on Friday asked some clients to hold...
Latest Briefs
 
Amazon Starts Latest Round of 9,000 Layoffs
Nasdaq to Launch Crypto Custody Service By End of June
Taking Aim at OpenAI, Databricks Releases ‘Dolly’ Language Model
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Tonal’s now-shuttered Palo Alto, Calif. retail store. Photo by Getty.
Exclusive startups
Tonal’s Valuation May Fall 90% in ‘Cram-Down’ Financing
Tonal, a fitness startup with a cadre of celebrity backers, is crunched for cash after failing to find a buyer.
SpaceX CEO Elon Musk last August. Photo by Bloomberg
Exclusive startups electric vehicles
SpaceX Plans New Funding With Backing From Saudi, UAE Investors
A subsidiary of Saudi Arabia’s investment fund and an Abu Dhabi investment firm are planning to invest in a multibillion-dollar funding round for SpaceX, Elon Musk’s rocket company, according to people familiar with the investor discussions.
Clockwise from top left: Julie Bornstein, Esther Crawford, Mark Hammond, Max Cutler, Kağan Sümer. Photos via Julie Bernstein, Robert Cowherd, Microsoft, Wikimedia and Kağan Sümer.
Free Agents startups
On the Market: The Founders Who Joined Microsoft, Spotify, Coinbase and Twitter
Call them acqui-fires. Several founders who took positions at the bigger tech companies that bought their startups recently lost their jobs when layoffs rolled through Silicon Valley.
Bill Gurley in 2019. Photo by Bloomberg
Exclusive
Good Eggs Cuts Its Valuation 94% in Lifeline Financing as More Startups Get Desperate
As more startups struggle to raise money from venture capitalists and approach bankruptcy, they are going to extreme lengths to stay afloat.
Art by Clark Miller.
Opinion startups economy
SVB Is Dead. Long Live SVB.
We all know how it began. It started on March 9, when the run on Silicon Valley Bank made the innovation economy totter and threatened a global financial crisis.
Art by Mike Sullivan
Exclusive microsoft startups
Amazon Faces Moment of Truth on Alexa as ChatGPT Steals Its Thunder
At the 2018 Consumer Electronics Show, Amazon announced one of its biggest partnerships yet to help make its Alexa voice assistant ubiquitous: a deal with Toyota to integrate Alexa into the auto giant’s cars.