Get Ready for Meta Ads Data Restrictions Coming March 2025

Advertising with Meta? It’s a good idea to review your custom audiences.

Starting in March 2025, Meta (the parent company of Facebook, Instagram, Threads, and WhatsApp) is rolling out new data restrictions on custom audiences to enhance user privacy.

While Launch Labs doesn’t directly advertise on Meta for our clients, we know many of our agency partners do. To help you navigate these changes, we’ve put together a quick guide to Meta’s updated Business Tools data restrictions, addressing the most common questions we’ve heard.

Please note, this article should not be considered legal advice. For privacy law and other legal concerns, consult a qualified attorney. Read on for general guidance about the new policy, who will be affected, and what brands should do before the March deadline.

What is a Custom Audience on Meta?

A custom audience on Meta is made up of customer identifiers a brand has collected, such as email, phone number, and address. Brands share those identifiers with Meta. Meta then hashes the provided data —converting it to unique codes to protect customer privacy—before comparing it to their user list to find the brand’s customers.

For example, Launch Lab users may use information gathered by Ignite on their websites to create a custom audience list for retargeting on Facebook or Instagram. The more information the brand provides, the better the match rate is likely to be.

That process will remain the same after the March restrictions. What will change is the sources of data that Meta is willing to accept.

What is Changing About Custom Audiences on Meta?

Meta already had some restrictions on custom audiences. Most notably, for users under the age of 18 in most countries. The new requirements are based not on demographics, but on the source of the provided information.

As of March 2025, Meta will place new restrictions on customer list custom audiences for ads or campaigns related to housing, employment, and financial products and services in the United States. This includes credit services, so brands that offer on-site financing or other credit-based services may be affected.

Before using a custom audience for any of these services, brands must certify the following:

• The data does not come from consumer report information or other sensitive sources
• The brand is not a consumer reporting agency and did not receive the information from a consumer reporting agency
• The information will not be used to make decisions about whether a consumer receives a financial product or service, insurance, employment, or government license or benefit

Of course, Meta also asks brands to follow its advertising policies and applicable laws. Advertising may not be used for any discriminatory practices. Meta may pause ads that don’t follow the requirements.

How Will Meta’s Data Privacy Changes Affect Launch Labs Agency Partners?

The data collected on your website(s) with Ignite by Launch Labs is first-party data, which means it comes directly from users, not from any restricted data source. This means that Launch Labs partners are likely to be unaffected by these changes.

Ignite by Launch Labs collects information as users move across your website. It starts with a simple pop-up asking users to share their location. From there, Ignite collects data that can be shared with your CRM or other marketing tools. Businesses can also use this information to create custom audiences that meet all of the certifications required by Meta.

What Should Brands Do Before the Deadline?

Companies that are not running ads related to housing, employment, financial products, and loans are most likely not affected. They can continue as they always have. Brands that do advertise these services should check their information sources to ensure that they meet Meta certification guidelines.

If these brands have existing campaigns or ad sets, they should verify that all certifications have been checked. New campaigns and ad sets created in March should include these verifications on the set-up screen. For older campaigns, brands may need to manually check that certifications are in place.

Starting in mid-March, Meta will pause ads that have not been certified. To reactivate paused ads, brands may need to either switch the custom audience to one that can be certified or use standard ad parameters.

Brands that do use consumer report information or other sensitive data may need to shift their data collection methods. As the focus on privacy increases, first-party data has become the gold standard for many brands. Learn how to set up your first-party data strategy and see how Ignite by Launch Labs can work for your brand.