Meta x Apple: a blow to advertisers' pockets or digital justice?
Posted: Sun Dec 22, 2024 6:39 am
Meta, the owner of Facebook, Instagram and WhatsApp, has announced that it will charge advertisers a 30% fee on the amount spent on boosted posts on iOS. The measure, which will come into effect soon, aims to offset the transaction fee charged by Apple on in-app purchases. The new fee has sparked debate: will it be a blow to advertisers’ pockets or a step towards digital justice?
The measure is likely to increase advertising costs for businesses, especially small and medium-sized businesses with limited budgets. However, the percentage of business owners affected is likely to be smaller in Brazil, since more than 80% of the population opts for Android devices, according to a survey by Statista .
On the other hand, MATH experts explain that this change should not have a significant impact on large paid media investors on these platforms. “For now, this change is only valid for advertisers who use the boost button on mobile phones. Therefore, large companies that advertise will not see any change, since they use management platforms to upload campaigns,” explains MATH Media Analyst Caio Gonçalves.
Another point of attention, according to Caroline Proença, Media Analyst at MATH, now for Meta, “is that charging this fee can boost other channels and media platforms”, she warns.
What does Uncle Mark's company say?
Meta, on the other hand, argues that the new fee is necessary to ensure digital fairness. The singapore phone number example company claims that Apple charges a 30% fee on all in-app purchases, including those related to ads. This means that the company, like any other developer, must pay this fee to Apple.
By passing the fee on to advertisers, Mark's company explains that it's simply leveling the playing field and ensuring that all advertisers pay the same price for advertising on iOS.
Keeping an eye on creators
Although on the one hand it may seem like an indirect way of pressuring creators, who are the biggest users of the boost button, to migrate to Android, “it could end up shooting themselves in the foot, as many have already migrated to other platforms, such as TikTok, for example”, highlights Gabriel Nunes, Ads Lead at MATH.
According to Caio, it is important to keep an eye on the issue, because although the charge is exclusive to the button, this could also be a test to later extend this decision to the Business Manager. “If this is consolidated, we will probably have to start segmenting campaigns by operating system, aiming to optimize costs”, he adds.
The Future of Online Advertising
It is still too early to predict the real impact of Meta's new tax. However, it is likely that the measure will lead to an increase in advertising costs for companies, especially small and medium-sized ones.
It is also possible that the measure will lead to a decrease in competition in the online advertising market, while Meta believes that the new tax is necessary to ensure digital justice and that, in the long term, it will be beneficial for all advertisers.
The measure is likely to increase advertising costs for businesses, especially small and medium-sized businesses with limited budgets. However, the percentage of business owners affected is likely to be smaller in Brazil, since more than 80% of the population opts for Android devices, according to a survey by Statista .
On the other hand, MATH experts explain that this change should not have a significant impact on large paid media investors on these platforms. “For now, this change is only valid for advertisers who use the boost button on mobile phones. Therefore, large companies that advertise will not see any change, since they use management platforms to upload campaigns,” explains MATH Media Analyst Caio Gonçalves.
Another point of attention, according to Caroline Proença, Media Analyst at MATH, now for Meta, “is that charging this fee can boost other channels and media platforms”, she warns.
What does Uncle Mark's company say?
Meta, on the other hand, argues that the new fee is necessary to ensure digital fairness. The singapore phone number example company claims that Apple charges a 30% fee on all in-app purchases, including those related to ads. This means that the company, like any other developer, must pay this fee to Apple.
By passing the fee on to advertisers, Mark's company explains that it's simply leveling the playing field and ensuring that all advertisers pay the same price for advertising on iOS.
Keeping an eye on creators
Although on the one hand it may seem like an indirect way of pressuring creators, who are the biggest users of the boost button, to migrate to Android, “it could end up shooting themselves in the foot, as many have already migrated to other platforms, such as TikTok, for example”, highlights Gabriel Nunes, Ads Lead at MATH.
According to Caio, it is important to keep an eye on the issue, because although the charge is exclusive to the button, this could also be a test to later extend this decision to the Business Manager. “If this is consolidated, we will probably have to start segmenting campaigns by operating system, aiming to optimize costs”, he adds.
The Future of Online Advertising
It is still too early to predict the real impact of Meta's new tax. However, it is likely that the measure will lead to an increase in advertising costs for companies, especially small and medium-sized ones.
It is also possible that the measure will lead to a decrease in competition in the online advertising market, while Meta believes that the new tax is necessary to ensure digital justice and that, in the long term, it will be beneficial for all advertisers.