Facebook Slashes Price for Ad-Free Subscriptions in Europe

Meta is lowering the price of ad-free subscriptions for European Facebook and Instagram users.

The social media giant is reducing the price of those subscriptions by 40% in the European Union, according to a Tuesday (Nov. 12) company blog post.

“Going forward, people based in the EU will still have the option to choose between subscribing for an ad-free experience or continuing to access our services for free,” the post said. “For those people who choose to continue using our services for free, they’ll now also be able to choose to see less personalized ads. However, we remain committed to personalized advertising, which will always be the cornerstone of a free and inclusive internet.”

Meta launched its ad-free subscription offering last year to comply with European regulations, namely the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA).

Since then, regulators have issued demands “that go beyond what is written in the law,” leading Meta to launch an additional option for users in the EU, per the post.

“Over the coming weeks, people in the EU who choose to use Facebook and Instagram for free with ads will be able to choose to see ‘less personalized ads,’” the post said. “This less personalized ads option relies on less data, so we’ll show ads based only on context — what a person sees in a particular session on Facebook and Instagram — and a minimal set of data points including a person’s age, location, gender and how a person engages with ads.”

The changes come amid the ongoing rise of social commerce, a model that lets consumers purchase directly from social media platforms.

“In recent years, social commerce has grown substantially, reflecting a change in how products are discovered and purchased online,” PYMNTS wrote last week. “The numbers are hard to ignore. TikTok surpassed $10 billion in consumer spending, a testament to its evolving role in shaping buying behavior and its impact on the consumer culture.”

Brands have begun turning to influencers to reach consumers, a tactic that makes sense, given that Generation Z consumers are now 117% more likely to shop from influencers, according to PYMNTS Intelligence.

“With product recommendations and creating authentic connections with their audiences, influencers have become key touchpoints in the customer journey,” PYMNTS wrote.