Meta has unveiled a new strategy, requiring businesses and influencers to cover the 30 percent fee imposed by Apple when promoting their content on Facebook and Instagram iOS apps. This move comes as a consequence of Apple’s 2022 update to its App Store policy. Extending the 30 percent cut from digital purchases to boosted posts, categorizing them as in-app purchases. Meta is now passing this additional expense on to advertisers.
Change in Billing Dynamics
Commencing later this month in the US, and expanding to other markets later this year. Apple will assume control of billing for boosted posts through the apps. This change will result in a higher cost for advertisers when paying for boosted posts on Instagram and Facebook iOS apps. With the 30 percent fee becoming applicable. Advertisers can, however, circumvent Apple’s fee by utilizing the mobile web or desktop platforms.
Meta’s Dilemma
Meta acknowledges its constrained position, stating it must adhere to Apple’s rules or risk losing the boosted post feature from its iOS apps. In a blog post, the company expresses reluctance to eliminate the ability to boost posts. It believes such a move would adversely affect small businesses. Diminishing the discoverability of the feature and potentially depriving them of a valuable promotional tool.
Altered Payment Process:
For those willing to incur extra expenses to promote posts via iOS apps, a distinct payment process is mandated. Advertisers must prepay funds into their accounts and pay for boosted posts in advance of publication. Deviating from the previous practice of payment after the ads run.
Fee Avoidance Options:
If advertisers choose to add prepaid funds through the Facebook or Instagram iOS apps. They will be subject to Apple’s 30 percent service fee. Alternatively, adding funds to their Meta account on desktop or mobile web provides an avenue for advertisers to utilize the funds for boosting posts from any tool, including the Instagram or Facebook iOS apps, without incurring additional fees, according to Meta’s statement.
FAQ: Meta’s Decision for Advertisers Covering Apple’s 30% Fee on Boosted Facebook and Instagram Posts
Why is Meta implementing this change?
Ans: Meta is aligning with Apple’s updated App Store policy, which extends a 30% fee to boosted posts. As a result, Meta is transferring this cost burden to advertisers.
When will this change take effect?
Ans: Starting later this month in the US, and expanding to other markets later in the year, Apple will take over billing for boosted posts through the Facebook and Instagram iOS apps.
Can advertisers avoid Apple’s fee?
Ans: Yes, advertisers have the option to bypass Apple’s fee by utilizing the mobile web or desktop platforms instead of the iOS apps.
What is Meta’s stance on this decision?
Ans: Meta acknowledges its limited options, emphasizing that compliance with Apple’s rules is necessary to retain the boosted post feature on its iOS apps. Removing the feature would negatively impact small businesses.
How will the payment process change for advertisers?
Ans: Advertisers willing to promote posts via iOS apps will need to follow a different payment process. They must add prepaid funds to their account and pay for boosted posts in advance, before publishing.
What if advertisers add prepaid funds through the Facebook or Instagram iOS apps?
Ans: If advertisers choose this method, they will be subject to Apple’s 30% service fee.
Are there alternative payment options to avoid the fee?
Ans: Yes, advertisers can add funds to their Meta account on a desktop or mobile web. This allows them to use the funds for boosting posts from any tool, including the Instagram or Facebook iOS apps, without incurring additional fees.
How does Meta justify this decision to advertisers?
Ans: Meta emphasizes the need to play by Apple’s rules to maintain the boosted post feature, asserting that removing the feature would hinder small businesses by reducing discoverability and depriving them of a valuable promotional tool.
What are the potential implications for small businesses?
Meta is concerned that removing the boosted post feature could make it less discoverable, negatively affecting small businesses that rely on it for effective promotion.
Will Meta consider reverting this decision in the future?
The FAQ does not provide information on potential reversals, but Meta might adjust its strategy based on evolving circumstances.
