In recent days, there have been reports that Meta is working on a project to offer ad-free versions of Instagram, Facebook, and WhatsApp. According to a report by Reuters, the pricing of this project is still being discussed. YouTube has previously offered an ad-free version of its service, YouTube Premium, but the prospect of ad-free subscriptions on social media platforms raises questions about these platforms’ revenue streams.
Why is Meta Involved in a Venture for Ad-Free Instagram, Facebook, and Whatsapp?
It would not be wrong to say that Meta is actually bringing up the option of ad-free subscription as a way to comply with the rules that the European Union has implemented on personal data. Especially in recent years, personalization is one of the most popular areas in advertising as a result of the fierce competition on platforms where advertising is given. If we add the rapid advances in artificial intelligence, we can think that we have a very positive picture in front of us for advertisers. After Meta was fined 390 million euros by Ireland in early 2023, we saw that the contract it offers to users cannot be a basis for personalized advertising. On the other hand, it is said that Meta took this step as an action due to users blocking ads. Would such a big step be taken to show the ads to the users who will not block it, or what harm does it do to the users who block the ads, these are all question marks that remain in our minds.
Let’s summarize the situation that Meta is in. On the one hand, it is working on developing features that can provide maximum benefits to its users. On the other hand, it is trying to provide advertisers with the environment that will provide them with maximum optimization data in order to increase advertising revenue, one of its main sources of income. However, laws come into play in the intersection of users and advertisers. At this point, it is trying to implement the laws that are wanted to be fulfilled by the European Union. In my personal opinion, due to legal obligations, a subscription model for ad-free Instagram, Facebook, and WhatsApp has been on the agenda. I don’t think a giant company like Meta would create such a “question mark” in the minds of advertisers just for additional income.
What Can Meta Offer Users With Its New Subscription Model?
Meta’s paid ad-free subscription model may have raised concerns for advertisers. It would be wrong to say that this concern is completely unjustified. However, as with any new development, I believe it is important to consider the pros and cons together. Therefore, let’s first evaluate the user side.
Meta has not yet announced the price of its paid subscription model for European Union countries. Based on the prices that have been discussed, I estimate that this price will be around €13 per month. Meta could set an average price that is not too high or too low compared to other platforms.
Let’s first discuss what a ad-free Instagram and Facebook experience could provide for users. Since Meta’s advertising logic is very different from YouTube, I don’t think this model will be very popular compared to YouTube Premium. Because when you see an ad on YouTube, you have to watch it for at least 5 seconds. However, it is possible to quickly skip ads on Instagram, Facebook, and WhatsApp.
How Will Advertisers Be Affected If Ad-Free Instagram and Facebook Subscriptions Are Introduced?
When we look at the advertiser side, it would be appropriate to evaluate this new subscription system with different dynamics. For example, if we evaluate this project based on the income level of target audiences, we can consider it an important development for advertisers. Although we are proceeding entirely with estimates, we can predict that this application will be a subscription system that is heavily preferred by high-income users in European Union countries. As a result, the most affected groups of advertisers will be businesses that publish ads targeting this target audience. For example, a luxury real estate seller would benefit from developing an alternative plan right now.
There is a much more positive picture for advertisers who appeal to users with middle and low income groups living in European Union countries. In my opinion, Meta is making this regulation to resolve the uncertainty between itself and the laws of the European Union. After every uncertainty is resolved, new opportunities emerge. Here, the way to publish more “personalized” ads for advertisers can be opened. More options can be offered for users’ interests, purchase history, and movement algorithms. Therefore, I recommend that advertisers targeting middle and lower income target groups in European Union countries do not see this development as completely negative.
What Awaits Us In The Future?
We can clearly see from the actions of these major companies that the European Union’s sensitivity to data privacy is not just a written document. This process is likely to continue. It is very likely that the European Union will limit advertising in its member countries from countries that do not apply its own privacy rules in the near future. The fact that the cookie policies of websites have been so affected by the GDPR (General Data Protection Regulation) is an open example before us. It is not difficult to predict how a giant digital advertising platform like Google is making investments to find alternative solutions for this reason.
It seems that digital advertising platforms will undergo a lot of changes in their efforts to comply with the law at this time. So what should be done in an age where advertising is applied with such clear rules? First of all, it will be winning moves to do work that matches brand loyalty with organic posts and organic traffic in this process. In short, we are receiving signals that the end of a volume-oriented era for social media is approaching. It is more likely that high-quality posts will come to the fore more than publishing a lot of posts and making people reach these posts through paid ways. We can think that one of the brightest periods of content creators is approaching. For this reason, brands may want to contact content creators more closely.
Paid channels will always be the locomotive in digital marketing and digital marketing in particular. However, if we need to evaluate our own geography, I think we are slowly coming to the end of systematic content production for brands in Turkey. We will see more and more brands that focus on publishing high-quality content and creative ideas instead of more volume in the future period. Here, the main burden will again be on content creators and advertisers. Creativity will come into play within the limitations and conditions.
One point clearly catches our attention when we look at the development of Google’s algorithm. “To provide users with the information they really want to reach.” Therefore, I recommend to all brands to put the user, that is, the human, in front of their brands in all publishing media.
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