Brief overview of the subscription scheme
Users in the EU who are older than 18 now have the option to pay to avoid ads on Facebook and Instagram. At the same time, Meta is implementing an age restriction on ads targeting users under 18.
For eCommerce businesses and active advertisers on these platforms, this could affect your marketing, depending on how willing users are to pay for an ad-free experience. But before too much concern arises, pricing will play a decisive role in how many consumers ultimately choose to pay for their membership going forward.
The subscription scheme is initially set to cost €9.99/month on web and €12.99/month on mobile, with the option to continue using the platforms as usual.
Consumer attitudes towards the paid version
A survey by Dansk Erhverv shows that 9 out of 10 Danish consumers are not willing to pay to avoid ads on Meta's platforms. A large proportion consider the price too high and are therefore hesitant about the new initiative. Furthermore, around 1 in 10 Danish consumers finds the ads relevant, which indicates that businesses are succeeding in keeping their ads current and targeted to the right audience.
It is therefore not expected that the initiative will have any immediate consequences for your business right now, which is positive news for e-commerce.
There are indications that it may be difficult to get users accustomed to paying for something they previously received for free. As a result, it appears that many users prefer to pay with their data rather than their money. This also suggests that there will still be a sufficient number of potential customers seeing your message.
But why is Meta rolling this out anyway, when their platforms depend on advertising revenue?
GDPR fines and subsequent price increases
The subscription scheme comes in the wake of the EU's criticism of Meta's targeting and data collection practices, which back in January resulted in a GDPR fine. The ruling focused on users' lack of consent to personalised marketing, as users had no real choice regarding whether they wished to receive ads based on their behaviour on the platforms.
The implementation of this initiative is therefore an attempt to address this by offering users an optional choice going forward. However, whether it truly constitutes a free choice remains debatable, as it is argued that users' privacy is essentially being priced.
And when it comes to pricing, Meta has already announced increases to the subscription scheme. From 2024, the price will rise by €6/month for web users, while smartphone users will pay €8 more for each account registered in the user's account centre.
The sudden price increase may seem paradoxical and also raises questions about whether Meta truly wants its users to switch to the subscription model — making the initiative appear more or less like a legal manoeuvre.
The need for multiple channels
In light of the positive consumer research, there is still one important message that this new initiative illustrates:
Always make sure to spread your attention across multiple channels to build resilience against changes like these.
In this way, you create the best conditions for your business by maintaining a presence across multiple channels, while prioritising those that are less vulnerable to change.
This includes digital channels such as SEO and email marketing, where SEO's focus on content and user experience makes it more robust against algorithm changes, while email marketing enables direct communication without relying on third-party platforms.
