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Meta states that these changes result from EU regulatory requirements, including stricter interpretations of GDPR and the Digital Markets Act (DMA). Whilst the company claims it has already met legal requirements, further pressure from regulatory bodies has forced it to implement additional features.
What’s Changing for EU Users?
- Reduced subscription prices: The new price is €5.99 monthly (web) and €7.99 monthly (iOS/Android). Additional accounts will cost €4 monthly (web) and €5 monthly (iOS/Android). The lower price applies to current subscribers as well.
- Less personalised advertising: Adverts will be based on minimal data, such as age, location, gender, and immediate platform activity.
- Unskippable adverts: Meta will introduce unskippable ad breaks for non-subscribers. This move aims to benefit advertisers despite limited targeting options.
Contextual targeting replaces deeper behavioural tracking, likely reducing the relevance of adverts to users’ interests. However, advertisers can engage audiences through unskippable adverts.
Impact on E-commerce
Meta emphasises that personalised advertising remains fundamental to its business model. They also highlight its benefits for users and small businesses.
Reduced Targeting Effectiveness
Less personalised adverts will challenge businesses that rely on Meta platforms to reach specific target groups. Adverts may have broader reach but lower conversion rates. Niche products or services may be particularly affected.
Higher Costs for Effective Campaigns
As personalisation decreases, advertisers will need to invest more in creativity, testing, and campaigns to achieve the same impact.
Small and medium-sized enterprises heavily dependent on Meta’s advertising ecosystem may face greater challenges in effectively reaching customers. Meta argues that European businesses generate €107 billion annually from personalised advertising. Reduced advertising effectiveness could hinder SME growth and innovation.
Transition to Contextual Advertising
E-shops should focus on contextual advertising. Testing campaigns that use minimal data will help them better prepare for new regulatory requirements. For example, a sports equipment e-shop might place general fitness product adverts on websites publishing articles about exercise or health. The advert thus adapts to page content, not individual data or user preferences. This strategy relies purely on context, not user behaviour tracking.
Will Advertising on Meta Change?
It’s becoming clear how dynamic online advertising can be. One thing is certain: strategies will need adjustment to succeed with less personalised advertising. Focus on content that reaches broad audiences through relevant context and monitor performance impact.
It’s also advisable to consider diversifying marketing channels. Relying solely on platforms like Meta may be risky. Alternative channels such as Google Ads, TikTok, or email marketing may provide more stable solutions for customer acquisition.
It’s also crucial to actively use customer data to build direct relationships through owned channels, such as newsletters or loyalty programmes, reducing dependence on third-party platforms.
