Meta Announces Reduced Price for Ad-Free Subscription in Europe

On November 12th 2024, Meta announced they would be slashing the price of their ad-free subscriptions for European Instagram and Facebook users by 40% to meet changing EU requirements on customer protection and data usage.

Going forward, users based in the EU will still be able to choose between continuing to access Meta’s services for free or subscribing for an ad-free experience.

According to the new update, Meta says, ‘for those people who choose to continue using our services for free, they’ll now also be able to choose to see less personalised ads’, however, they ‘remain committed to personalised advertising, which will always be the cornerstone of a free and inclusive internet.’

November 2023:

In November 2023, Meta announced it would launch a new ad-free subscription for Instagram and Facebook users in the European Union. This was to respond to new EU rules which dictated that social media platforms had to offer an ‘opt-out’ option from targeted ads.

Meta’s approach met the EU rules by allowing users to opt out of data sharing for ads without having a major impact on its business. However, some groups argued their subscription alternative, claiming that it contradicted the core principles of the GDPR and safeguards against "data capitalism." After facing this scrutiny, Meta halved the subscription price in March to address these concerns and make it more accessible.

March 2024:

In March 2024, Meta offered to halve its monthly subscription fee for Instagram and Facebook from €9.99 to €5.99, a change that aims to address concerns from regulators and following increasing criticism from groups about Meta’s no-ads subscription option in Europe – which critics were saying requires Meta users to pay for their privacy.

November 2024:

Flash forward to November 2024, and Meta announces that they would reduce the price of their ad-free subscriptions for European users by 40% in ‘response to demands from EU regulators, even though the feedback goes beyond what is required in the law.’

As we briefly established, Meta would also be giving users the option to be able to choose between continuing to access Meta’s services for free or subscribing for an ad-free experience; however, the users who access Meta for free will also be able to choose to see fewer personalised ads.

So, what changes will occur and why?

• From November 13th, the price of the monthly ad-free subscription was reduced from €9.99 to €5.99 a month on the web and from €12.99 to €7.99 a month on IOS and Android.

• Each additional Instagram or Facebook account will be charged €4 a month on the web and €5 a month on IOS and Android.

• Existing subscribers do not need to take any action – this change will be implemented automatically.

• The new lower pricing will mean Meta’s subscription service will become one of the lowest among their competitors.

Less Personalised Ads in the EU

Over the coming weeks, EU users who use Meta for free with ads will be able to choose to see less personalised ads. This option relies on less user data, meaning the ads shown will be based on the context of the content the user sees in a session and a more minimal set of data information (including age, gender, location, etc.)

The decision to introduce ad-free subscription options will have notable implications for advertisers: this shift allows users in the EU to pay a fee to avoid ads, which in turn could reduce the overall reach of ad campaigns on these platforms.

Advertisers relying on Meta to target large, diverse audiences may find their reach significantly decreasing as users can opt out of ads entirely. This could make advertising on Meta’s platforms less valuable, especially for smaller businesses, which have usually benefited from precise targeting to reach their audiences.

The introduction of ad-free options highlights the growing push from consumers and regulators for privacy and, ultimately, control over user’s online experiences. Advertisers may need to shift their strategies to focus more on organic marketing, creating more engaging content to attract users who are increasingly resistant to ads.

Meta explains that although the change is designed to give people more control when it comes to their data, ‘it may result in ads that are less relevant to a person’s interests. This drop in relevance is inevitable given that drastically reduced data is being used to show these less personalised ads to people.’ Clearly they are trying to make this seem less appealing for their users by letting them know that their experience will be a lot less personalised and tailored to their interests.

‘We firmly believe that personalised ads are a vital component of the ad-supported internet that has enabled access to free online services for hundreds of millions of EU citizens and billions of people around the world. We will continue to advocate for regulations that support the responsible use of personalised advertising, allowing us to maintain the high-quality, free services that people have come to expect from us.’

Meta’s new decision is a significant step towards addressing regulatory pressures and user concerns about data privacy. By making its service more affordable, Meta aims to balance compliance with requirements and sustain its focus on personalised advertising for user experience.

Whether you opt for a subscription or choose to see less personalised ads, Meta is adapting to a new era of data transparency and user choice. While the changes may alter the relevance of ads for some, they also empower users with greater control over their online experience.

If you’re a business using Instagram or other social media types, staying informed about evolving industry updates and platform changes will be essential to optimising your digital marketing strategy. As the landscape continues to shift, Zelst stays up-to-date with the latest industry news in our blog, so you don’t have to.

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