Would Meta’s Ad-Free Paid Facebook and Instagram Model Jeopardize Marketers?

Meta may introduce a paid version for Instagram and Facebook in the European Union

Would Meta’s Ad-Free Paid Facebook and Instagram Model Jeopardize Marketers?

Facebook and Instagram have long been go-to social media platforms for marketers looking to boost their brand presence online. That’s perhaps why Instagram’s ad revenue is predicted to reach $50.58 billion in 2023 compared to Facebook’s $71.32 billion. Both platforms, which are products of Meta, are excellent for increasing brand awareness, reaching more people, and generating quality leads. 

But lately, Meta announced (well, not officially) something that has kept every serious marketer on their toes. The company plans to offer paid versions of Facebook and Instagram that would have no advertising in the European Union. 

Let’s dive a little deeper into why Meta may have to offer a paid version of Facebook and Instagram and how it would affect marketers. 

Meta May Allow Users to Pay to Avoid Ads on Facebook and Instagram

Almost everyone knows about YouTube Premium subscription, where you can watch your videos without any interruption caused by ad campaigns. The same may happen with two of the most widely used social platforms—Instagram and Facebook—in the near future. 

Meta’s three representatives broke the news, though in anonymity since it is still confidential. They said it is in response to the European Union’s regulatory scrutiny over Meta’s data-collection practices. That means users paying for the paid version of Instagram and Facebook would have an ad-free social media experience. 

By offering users an alternative to its ad-based social media services, Meta may help avoid privacy concerns and other scrutiny from E.U. regulators. However, there may be a downside that no one is currently considering, and it has to do with how businesses promote their products and services on the platforms.

Note that the company would continue offering a free, ad-based version of Facebook and Instagram in the European Union, which has been its business model ever since the inception. How much the paid version will cost is still not unknown. 

How Meta’s Paid Facebook and Instagram Would Affect Marketers

To understand how Meta’s possible move to offer paid, ad-free versions of Facebook and Instagram in the European Union would affect businesses and marketers, we need to look at how YouTube Premium has impacted advertisers. 

YouTube has been the second most popular search engine after Google for decades, garnering a significant amount of attention from across the world. Advertisers and marketers have always used the platform’s potential to expand reach to their full advantage. 

However, with YouTube Premium, the reach is no longer the same and for obvious reasons. Currently, more than 80 million people have premium subscription for YouTube, not because they wanted exclusive content but also because they hated ads interrupting their watch time. So, advertisers lost a significant amount of attention from YouTube’s paid model.

The same may occur with Instagram and Facebook in the European Union. That said, Meta need to provide more than just an ad-free experience to make people pay for Instagram and Facebook. On top of this, ads on Instagram and Facebook are less intrusive than ads on YouTube. And if Meta were to add more features for the paid version, that may change their core business model. So, there are a lot of factors to consider before reaching a statement.

In a Nutshell

Businesses in the European Union relying on Facebook and Instagram for their promotion so far may see a gradual decline in ad impressions and engagement. Not because the users won’t be there anymore but because they may not have access to them. 

This further means that marketers and businesses would need to rethink their social media marketing strategy and consider the segments of people who would buy the paid subscription and those who would still stick to the free version of the platforms and target their ads specifically for the latter. 

Influencer marketing is another thing that would see a surge in the European Union since influencers may have direct access to those paying for ad-free Facebook and Instagram.

If you need help recreating your brand’s social media marketing strategy or with anything to boost your online engagement, get on a call with our social media marketing experts today, and let’s drive results that matter.