Meta’s Monetization Move: Facebook, Instagram Users To Face Apple Service Fee

Meta
(Last Updated On: February 16, 2024)

Key Highlights

  • Apple imposes a 30 percent service fee on boosted posts via Meta’s iOS apps
  • Boosting via browser avoids Apple charges, but not on iOS
  • Meta Ads Manager is exempt from Apple fees for ad campaigns

Meta Platforms announced on Thursday a significant change affecting businesses using its social media apps Facebook and Instagram on iOS. The company disclosed that a 30 percent service charge imposed by Apple would apply to posts boosted by businesses on these platforms. Also Read | Facebook Tips And Tricks: How To Create And Upload Facebook Reel Videos

Impact On Advertisers

Facebook

Advertisers seeking to boost their content on Instagram and Facebook through iOS apps will now encounter an additional 30 percent service charge levied by Apple. However, Meta emphasized that businesses can still boost their content via a browser without incurring these charges.

Implementation Timeline And Markets Affected

Meta stated that it would begin the enforcement of these changes in the United States this month, with plans to extend the service fee to other markets later in the year. This adjustment aligns with Apple’s updated App Store guidelines introduced in 2022.

Meta’s Response And Business Continuity

In response to inquiries about the potential repercussions of this alteration, a Meta spokesperson refrained from providing specific details. However, Meta asserted its commitment to maintaining the option for businesses to boost posts, citing the importance of supporting small enterprises by facilitating discoverability and promoting their businesses effectively.

Also Read | Facebook Tips And Tricks: Here’s How You Can Easily Change Facebook Profile Name

Payment Process And Billing Responsibility

Instagram

Under the new arrangement, advertisers boosting posts on iOS will be billed directly by Apple, requiring payment in advance rather than post-advertisement. Consequently, Meta will no longer handle billing for boosted posts on iOS.

Explanation Of Boosted Posts And Digital Service Requirement

Boosted posts serve as a tool offered by Meta for businesses seeking to enhance the visibility of their content on Facebook and Instagram, streamlining the promotional process without necessitating engagement with Meta’s Ads Manager. Apple defended the service charge, emphasizing that boosting posts qualifies as a digital service, thus necessitating In-App Purchase, as has been the norm.

Exemption For Separate Advertising Campaign Management App

Apple Logo

Notably, Apple clarified that Meta customers can continue to use the standalone app “Meta Ads Manager” to manage ad campaigns without incurring Apple’s commissions. This exemption is granted due to the distinct classification of the app as an advertising campaign management tool.

Conclusion

Meta’s decision to implement an additional service charge for boosted posts on iOS devices underscores the evolving dynamics between tech giants and app developers, with potential implications for advertisers and small businesses alike. As this change takes effect, stakeholders will closely monitor its impact on digital advertising strategies and business operations.

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About Shweta Srivastava

Say hello to Shweta, a tech fan who's new to the scene but already hooked on keeping up with all things tech. When she's not exploring the latest gadgets, she's diving into a good book, clicking photos as an amateur photographer, or enjoying classic movies and music. With her love for both tech and creativity, Shweta adds her own touch to tech news in a way that's easy to understand and enjoy.

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