Facebook becomes paid

Facebook becomes paid

The bloodletting to create the Metaverseon the one hand, the impossibility of track users for advertising purposes on Apple devices, on the other: Meta, that is Facebookis between a rock and a hard place and the only solution to save the budget of the social blue, but also of Instagram, could be to do so become paid.

Not entirely, but at least in part, yes: in Meta, in fact, there is an open discussion about introducing paid functions in Facebook and Instagram, in order to make more money from these two immense platforms, increasingly expensive to keep up. The idea, therefore, is to replicate the method Whatsapp (which, however, is not yet known if and how long it will work): the most used chat app in the world, in fact, is about to add a version “premium“dedicated to companies, with functions reserved for those who pay. To those who do not pay, however, the normal functions already known remain. But what will be the free functions, and which ones for a fee, of a possible Facebook Premium?

How will Facebook Premium be

The news of the arrival of paid functions on Facebook, and on Instagram, was reported by The Verge. The well-known American online newspaper was able to read an internal document in Meta which talks about the creation of a company division dedicated to “possible paid features“, that is to the possible paid functions.

The Verge asked for clarification on John Hegemanwho at Meta heads the monetization division, and the executive was vague, while essentially confirming the news: “We see an opportunity to create new types of products, features and experiences that people would be willing to pay for and excited to pay for.“, said Hegeman without, however, adding any details.

According to the executive, however, the paid features will not represent a large source of revenue for Meta in the short term. Therefore, a very gradual launch of these features but, Hegen says, “Over a five-year time horizon I think [l’introduzione di funzioni a pagamento] can really move the needle and make a pretty significant difference“.

Facebook without ads?

The question that everyone will be asking at this point is whether in five years we will have a paid version of Facebook, without advertising, and a free one, with advertising. A legitimate question, given that it would be something similar to what Telegram has already done, with Telegram Premium.

Telegram Premium, we remind you, is the paid version of Telegram (5.99 euros per month or 3.99 euros, depending on how you subscribe) without advertising banners and with some more functions. Will we see something like this for Facebook too?

At the moment John Hegeman states that he intends to expand the business advertising revenue and that Meta has no intention of offering a paid version of Facebook and / or Instagram without advertising.

But if Google will introduce measures in the Android operating system privacy protection similar to those already introduced by Apple in iOS, then the advertising business could literally collapse for Meta and the cards on the table could change a lot.

Tracking Transparency App

Meta has an average annual turnover of around $ 120 billion, but its revenues could collapse due to technical measures for privacy introduced by Apple and which could be imitated by Google.

In April 2021, with iOS 14.5, Apple launched the new feature Tracking Transparency App and, since then, iPhone apps have been forced to explicitly ask the user if he agrees to the tracking of your data for advertising purposes. Before, apps did this, without asking for permission.

According to Wall Street Journal this measure will cost Meta no less than 10 billion dollars in 2022, because most users don’t accept tracking and, as a result, Facebook advertising is much less personalized. With less data available, however, fewer investors are willing to save as much as Meta would like.

All this, at the moment, is limited to the Apple iOS world, which represents on average the 20-25% of the total market (the rest are Android smartphones). It is clear that if such a feature also arrives on Android, then Meta could lose over a third of its annual advertising revenue.

#Facebook #paid

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