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Posted 13/11/2024 6:47am

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Ad-free prices drop,
Less personalized ads option,
In EU's ad shop.

In partnership with
Salesforce

Facebook and Instagram in Europe boost contextual ads, slashes ad-free subscription prices 40%

The European Union is winning its slow grinding war of attrition with Meta. This morning, Facebook and Instagram announced they are slashing the price of their ad-free subscription in the European Union (EU) by 40 per cent and boosting its contextual advertising offering - it calls it "less personalised".

The new monthly subscription price will be €5.99/month on the web and €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. Existing subscribers will automatically receive the reduced price.

In addition to the price reduction, Facebook and Instagram are launching an option for users to see 'less personalized ads'. The 'less personalized ads' option will show ads based on context and a minimal set of data points including age, location, gender, and how a person engages with ads. This new ad option may result in ads that are less relevant to a person’s interests.

In a low data environment, Facebook and Instagram will introduce ad breaks that are unskippable for a few seconds. Facebook and Instagram will inform EU users about the new ad option and ask them to choose between subscribing or continuing to use the products for free with ads.

"This is the second time in a year we have made significant changes to our business model in the EU to address regulatory feedback, which is testament to our commitment to complying with evolving EU regulations and offering people control over their experiences," said Facebook and Instagram in a joint statement.

The social media giants have made these changes in response to regulatory feedback and to comply with EU regulations. Personalised ads are valuable to both individuals and businesses, particularly small businesses, as they allow people to connect with the brands and products that are most relevant to them. Studies show that personalised ads boost revenues for companies that show ads on Facebook and Instagram's platforms, with European businesses earning €107 billion in revenue from personalised ads on their platforms every year. Each €1 spent on Meta ads yields €3.79 in advertiser revenues in Europe.

"The changes we’re announcing today meet EU regulator demands and go beyond what’s required by EU law. And we remain steadfast in our view that personalised ads are the best experience for people and businesses – and because people understand that value, we expect that most people will choose our personalised ads service even with these expanded options," the companies added.

"We remain committed to personalised advertising, which will always be the cornerstone of a free and inclusive internet," they concluded.

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