Meta Presents Ad Free Facebook And Instagram Versions 8211 What Does This Mean For Advertisers
Management Summary
This blog post provides an overview of this significant development and its potential impact.
Ban on personalized advertising on Meta
The European data protection authority has agreed to an indefinite extension of Norway’s existing ban, according to a statement from the EU regulator. In the summer, the Scandinavian country imposed a daily fine of almost 85,000 euros on the company because Meta was illegally using user data such as location or browser history for behavioral advertising. Norway then submitted a request to the EU data protection authority EDPB to extend the ban at the European level.
This extends Norway’s ban on personalized advertising to all 30 countries in the European Union (EU) and the European Economic Area (EEA).
This decision affects more than 250 million European users of Facebook and Instagram.
Meta offers ad-free versions of Facebook and Instagram
Contrary to this decision, Meta announced on October 30th that they would offer an ad-free version of Facebook and Instagram to those over 18 starting in November. In doing so, they want to offer users the opportunity to opt out of advertising and data tracking.
In these countries, users have the opportunity to use Meta products ad-free for a fee. Users can choose a subscription, priced at €9.99/month on the web or €12.99/month on iOS and Android. Regardless of where purchased, the subscription applies to all linked Facebook and Instagram accounts in a user’s account overview.
When you open the app, you will receive a message asking whether you want to continue using the ad-free version or take out a subscription.
Screenshot of the notification in the Meta Apps, source: e-dialog
The original subscription is valid for all linked accounts of a user until March 1, 2024. From March 1, 2024, there will be an additional fee of €6 per month for the web version and €8 per month on iOS and Android for each additional account.
The ad-free subscription is available to people aged 18 and over. Meta says they continue to evaluate how they can provide youth with a useful and responsible advertising experience in light of this evolving regulatory environment.
Meta is committed to compliance
Meta also mentions that regardless of whether users use the products for free with advertising or take out a subscription, they are committed to keeping users’ data private and secure in accordance with their own guidelines and the EU General Data Protection Regulation (GDPR).
Meta also emphasizes that they believe in personalized advertising:We believe in an ad-supported internet, which gives people access to personalized products and services regardless of their economic status. It also allows small businesses to reach potential customers, grow their business and create new markets, driving growth in the European economy. And like other companies we’ll continue to advocate for an ad-supported internet, even with our new subscription offering in the EU, EEA and Switzerland. But we respect the spirit and purpose of these evolving European regulations, and are committed to complying with them.Source:Meta
Impact on advertisers
Advertisers can continue to run personalized advertising campaigns in Europe to reach those who choose to use free and ad-supported products. In the future, Meta wants to continue investing in new tools that maintain the value of personalized advertising for both users and companies, while giving users control over their advertising experience on the platforms.
Conclusion
It remains to be seen how many users will actually choose the paid version and how much revenue this will bring. According to a recent report from Meta, the company generates an average of $19.04 per quarter per EU user. So at first glance it doesn’t sound particularly cost-effective for Meta.
Furthermore, it is questionable whether it could have an impact on advertisers’ advertising costs if, surprisingly, a large number of users opt for ad-free versions and therefore less advertising space is available within the meta products.
It will also be exciting to see how other social platforms follow suit with ad-free subscriptions in order to comply with EU regulations.
