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Meta has announced significant changes for users in the EU, following continued pressure from regulators. The changes include lowering the cost of an ad-free subscription to enable “Ads You Don’t Like.”
Let’s discuss…
Meta declaration
Here’s what Meta has to say about “sub-personalized ads”:
In the coming weeks, people in the EU who choose to use Facebook and Instagram ad-free will be able to choose to see ‘less personalized ads.’ This option for less personalized ads relies on a little data…
Meta says these ads will be based on “a small set of data points including the person’s age, location, gender, and how the person engages with the ads.”
Meta says that if users choose to see less personalized ads, “it may result in ads that are less relevant to a person’s interests. That means people will see ads they don’t find interesting.”
Bad Meta Bet
Meta originally created an ad-free subscription model for EU users because the company believed it would satisfy regulators. This, Meta believes, will give users two options:
1. Use Facebook and Instagram with their data-driven ads
2. Pay to remove ads and their data will not be used for advertising
But the regulators weren’t buying it. Now Meta has been forced to lower the subscription price (in half) while now offering this “less personalized ads” option. It would appear that Meta has made a decision to sign up early, and now they are paying for it.
Impact on Marketers
Understand that the impact on advertisers is not to remove targeted input. I have seen the reaction that this is not a big deal because the marketers have been very successful and are using limited input anyway. But, this affects the data points that META may use to deliver advertisements.
Marketers should take this into consideration. How many users will sign up for semi-personalized ads? I’ve seen reports that Meta doesn’t hide this option – users are told to make a choice. How will it affect performance?
Now that it has happened in the EU, it sets a precedent. We can see this being used in other places as well. And that can be bad.
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