After the whole DSA (Digital Services Act) and a €390M fine, it’s official: ad-free subscriptions for Instagram & Facebook are available in the EU.
– Subscription plan: ➡️ €12.99/month, no ads! 🤑 An extra 8€ for each additional account… a bit much, don’t you think?
– Free with ads: ➡️ The usual setup 🤔 Does it give Meta a free pass to add even more ads for non-subscribers?
So many questions on my end: Does this mean Meta values user LTV at around €12.99/month (let’s remove the store fees but you get my point)? Who came up with that price point? And if this model catches on, would it even be profitable long-term if more people pay to avoid ads? Maybe we’ll see this option spread globally?
🚨 This could be bad news for advertisers. If lots of users switch to the paid tier, that means ↘️↘️ ad volume on one of advertisers’ favorite platforms, which could lead to ↗️↗️ CPMs and ↘️↘️ ROAS. Not ideal.