Comment: ApplyFlyer on Meta’s ad free subs tier

However reluctantly, global social media powerhouse Meta has introduced an ad free subscription tier to its Facebook and Instagram users in Europe.

It’s all down to EU lawmakers passing new legislation of course, so here’s what Brian Quinn, North America President & GM at global adtech AppsFlyer had to say about Meta’s new ad free option…

Brian Quinn, AppsFlyer

“Following the introduction of EU legislation to regulate the scope of Big Tech, Meta’s planned roll-out of an ad-free subscription model could be a potential goldmine for the company, as well as others like TikTok who might follow in their footsteps.

“This move likely stems from careful consideration that, while traditional subscription services can often struggle with user acquisition, moving free users into a paid tier is now a familiar process for contemporary cross-platform gamers or those streaming content via multiple paid services.

“Although familiar, it is still to be determined how this new option will be received by consumers.

“While they are used to content streamers and gamers may be looking for varied offerings across subscriptions platforms, there is not much successful precedence within the social media space yet.

“Also still to be seen is what demographic this connects with most – is it younger generations who would rather part with cash to avoid targeted ads, or is this likely to be Gen Xers with higher income who will give this tier a spin.

“Regardless, it remains to be seen whether this shift will be a cause for celebration for the tech giant, which last week reported its best operating margins in two years.”

“In terms of its implications for advertising, if the platforms’ revenue stream begins to diversify and come in more heavily from subscriptions, brands will need to assess the value of their dollars within an ecosystem that has been curbed by a monetary barrier.

“Whether this shift in audience offsets the loss of ad revenue or results in a utopia for targeted advertising remains to be seen.”