Meta has modified its ad-free subscription service in Europe to comply with evolving EU data privacy regulations. In an effort to appease EU regulators, the tech giant has reduced the cost of its subscriptions for no ads by 40%.
On November 12, 2024, Meta announced in its blog, “Today, we are announcing important changes to Facebook and Instagram in the EU, including reducing the price of subscription for no ads by 40%. Going forward, people based in the EU will still have the option to choose between subscribing for an ad-free experience or continuing to access our services for free.”
They added, “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.” These changes will apply in the EU, EEA and Switzerland to build “a free and inclusive internet.”
Why Did Meta Shift to Less Personalised Ads in the EU?
A year ago, Meta introduced a subscription option for ad-free services to align with evolving EU regulations like GDPR and DMA. This model, where users can choose between a paid subscription or free access supported by personalised ads, is a common practice and legally sound under EU law.
However, Meta continued to face regulatory pressure beyond the explicit requirements of these laws. In response to the feedback, and to maintain free access for a wider EU user base, the company is introducing a new option: ‘less personalised ads’.
Shedding light on the development, Meta said in its blog, “This less personalised ads option relies on less data, so we’ll show ads based only on context – what a person sees in a particular session on Facebook and Instagram – and a minimal set of data points including a person’s age, location, gender, and how a person engages with ads.”
What Is The Price of Subscription Now?
Meta has now reduced the price of the monthly subscription from €9.99 to €5.99/month on the web, or from €12.99 to €7.99/month on iOS and Android. Each additional Facebook or Instagram account will be charged at €4/month on the web and €5/month on iOS and Android.
This new pricing will be among the lowest in the industry. Existing subscribers will automatically benefit from this lower price without needing to take any action.
Moreover, Meta will also survey existing EU users on Facebook and Instagram about their ad preferences and offer them to subscribe at the reduced rate. The different pricing for iOS and Android is because of the fees charged by Apple and Google through respective purchasing policies.
What To Expect From Less Personalised Ads
While this new choice is designed to give people an additional control over their data and ad experience, it may result in ads that are less relevant to a person’s interests.
Here’s what you can expect from less personalised ads:
Reduced Ad Relevance
- Less Tailored Ads: By limiting the amount of data used to target ads, the ads you see may be less relevant to your interests.
- Impact on Ad Experience: A decrease in data-driven targeting may result in less engaging and less interesting ad content.
Introduction of Ad Breaks
- Unskippable Ads: Some of the ads people will see in the less personalised ads experience will be unskippable for a few seconds.
- Industry Standard Practice: Such ad breaks are common across other services, and will help Meta offer a less personalised ads experience at no charge.
User Notification and Choice
- Informative Notification: Meta will notify EU users of Facebook and Instagram about the new “less personalised ads” option.
- User Control: You can choose this option and adjust your preferences at any time within your ad settings so you have control over your data.
How Will Personalised Ads Deliver More Value for Businesses
This is the second time Meta has made changes to their business model in the EU to address regulatory feedback after the previous update on December 4, 2023.
Here’s how Meta is balancing compliance with delivering value for users and businesses in the EU.
- Relevance and Efficiency: Personalised ads help connect users with relevant brands and products. This is particularly beneficial for small businesses, which form the backbone of the EU economy.
- Economic Impact: Studies indicate that personalised ads boost revenue for businesses on our platforms. In Europe alone, these ads generate €107 billion annually, supporting jobs and driving economic growth.
- Amplified ROI: Every €1 spent on Meta ads in Europe yields €3.79 in advertiser revenue. This significant return on investment is directly linked to personalised advertising.
Similar to when Apple’s changes to App Tracking Transparency made it more difficult for small businesses to reach their customers, these restrictions could stifle economic growth and hinder the ability of businesses to reach their target audience.
While Meta believes personalised ads offer the best experience, they remain committed to the ad-supported internet model, which has enabled free access to online services for millions globally. Meta undertakes no obligation to update these statements as a result of new information or future events.
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