Meta, the company behind Instagram and Facebook, is thinking about providing ad-free versions of its social media platforms in Europe due to the new EU privacy regulations mandating user consent for targeted ads, as per The Wall Street Journal.
Asking users for consent might negatively impact the company’s earnings since they are unlikely to willingly share their data, potentially decreasing Meta’s advertising revenue, its primary income source.
What you should understand:
- Meta, the company that owns Instagram and Facebook, is thinking about providing ad-free versions of its platforms in Europe.
- The new EU privacy law mandates that Meta must get permission from users before showing personalized advertisements.
Europe’s Instagram and Facebook advertisements
Meta is contemplating introducing a monthly charge for users in Europe to eliminate ads from their Instagram and Facebook feeds, marking the first instance of the company levying fees for its core services.
The anticipated price for the Adless subscription plan is approximately EUR 13 per month for mobile devices and EUR 10 per month for web browsers. Users will also be required to pay an extra EUR 6 for each additional account.
The launch date of the unadvertised subscription plan in Europe and its availability in other regions remains uncertain. Meta is currently in talks with data protection authorities in Belgium and Ireland regarding the plan, which they refer to as Subscription on Ads (SNA). The company anticipates starting the rollout in the upcoming months.
Business model transformation
The existing Meta business model relies on personalized advertising using user data, but upcoming EU privacy laws will restrict businesses’ ability to gather and utilize user data for advertising.
Meta could maintain its revenue stream on social media platforms in Europe by offering an ad-free subscription plan that aligns with new privacy regulations.
Would you be willing to make a payment for using Instagram and Facebook?
Source: Wall Street Journal