Facebook and Instagram Offer UK Users Ad-Stopping Subscription Fee
Meta, the parent company of Facebook and Instagram, announced on Friday that it would begin offering a paid subscription service for users in the United Kingdom who do not want to see advertisements on its platforms. The move comes as the company seeks to provide users with a clear choice about whether their data is used for personalized advertising.
According to Meta, UK users will be notified in the coming weeks and given the option to subscribe to its platforms without ads for a fee of £2.99 per month on the web or £3.99 per month on iOS and Android apps. This is significantly lower than the starting price of €5.99 (approximately $6.50) offered to EU users, who can also opt out of personalized advertising.
"This will give people in the UK a clear choice about whether their data is used for personalized advertising, while preserving the free access and value that the ads-supported internet creates for people, businesses, and platforms," Meta said in a statement.
The move has been met with mixed reactions from industry experts. Some have praised Meta's decision to provide users with more control over their data, while others have expressed concerns about the potential impact on small businesses and advertisers who rely on targeted advertising.
"By offering users the option to pay for an ad-free experience, Meta is acknowledging that some people are willing to pay a premium for greater control over their online experience," said Emma Jones, CEO of Enterprise Nation. "However, this could also have unintended consequences for small businesses and entrepreneurs who rely on targeted advertising to reach their customers."
Meta's decision to offer a paid subscription service comes as the company faces increasing scrutiny from regulators in the EU over its data collection practices. In response to criticism, Meta has argued that its regulations are creating a worse experience for users.
The introduction of paid subscriptions is expected to have significant economic implications for both Meta and the broader advertising industry. According to eMarketer, the UK digital ad market was worth £14.3 billion in 2022, with Facebook and Instagram accounting for a significant share of that revenue.
Meta's decision to offer a lower-priced subscription service in the UK is seen as an attempt to mitigate potential losses from Apple's App Tracking Transparency (ATT) policy, which requires apps to obtain explicit user consent before tracking their activity. The higher fee charged on iOS devices is attributed to the 30% commission taken by Apple for in-app purchases.
As Meta continues to navigate the complex regulatory landscape of the digital advertising industry, it remains to be seen how this move will impact its bottom line and the broader market.
*Reporting by News.*
