[ad_1]
Meta hopes to capitalize on advertiser outrage in its battle with Apple over in-app purchase fees by announcing it will soon pass Apple’s 30% service fee onto its customers. In a announcementthe social media giant explains that from the end of the month, advertisers who wish to pay to boost a post in the iOS Facebook or Instagram application will now be billed through Apple, where this surcharge will now be collected.
Meta had apparently circumvented Apple’s rules with the pay-to-boost option, as it notes that it is now required to “either comply with Apple’s guidelines or remove boosted posts from our apps.” Since he obviously doesn’t want to do the latter, he simply increases the cost of these in-app purchases so that the impact on his own bottom line doesn’t suffer.
Advertisers can avoid these additional fees by paying to boost posts from the web on Facebook.com or Instagram.com, which work in both desktop and mobile browsers. But Meta understands that customers won’t see this as a convenience: in-app purchases are the easiest way to transact on Apple devices. So, for those who choose to use in-app purchases, they will now have to pay more to benefit from this privilege.
The company is likely hoping that raising the price of iOS enhancements will help spark outrage and aid its broader efforts to disrupt Apple’s stranglehold on the iOS app economy. Meta, like other tech giants including Epic Games, Spotify, Match and others, wants to offer its own payment systems in its apps, and not be forced to use Apple’s in-app purchases, resulting in a 30% commission on his account. in-app sales. The company is among those pushing lawmakers and regulators to change the way Apple does business. By passing on this 30% fee to the thousands of small business advertisers on iOS, it could have a few more allies in its war with Apple.
Additionally, the move to Apple’s in-app purchases will mean that advertisers will have to pay up front, rather than after their boosted posts are served, as before. This will require them to add prepaid funds to their accounts to get a boost, Meta says, which incurs a 30% fee. However, adding funds to their account from the web will not include fees.
The changes will initially apply to Meta apps in the US, but will roll out to other markets later this year.
Meta and Apple are increasingly at odds as Apple expands its advertising business, thereby reducing Meta’s revenue. With the launch of App Tracking Transparency, which allows consumers to opt out of having apps track them, Meta loss of advertising market share as Apple grew. The company also has long discussed that Apple’s ATT would reduce its advertising revenue, warning investors that ATT-related “headwinds” would impact its advertising revenue. own ability to monetize through advertising. Meta has since recovered from the fallout from ATT, having just tripled its profit in the fourth quarter and announced its first ever dividend.
The social media giant was also among those to criticize Apple for its compliance with new EU regulations, the Digital Markets Act, with CEO Mark Zuckerberg telling investors that Apple’s DMA rules were ‘so onerous’ he doubted any developer would buy into it.
[ad_2]