European users of Facebook and Instagram will soon be able to opt for less personalised ads, Meta Platforms announced on Tuesday, giving users more control over their data without having to pay for an ad-free subscription. This move follows mounting pressure from European Union (EU) regulators concerned about data privacy and competition in the digital market.
Meta introduced an ad-free subscription model across the EU over the past year in an attempt to comply with strict EU privacy regulations. However, regulators criticised the choice as insufficient, arguing that it effectively forced users to either pay for privacy or continue receiving fully personalised ads. In response, Meta will now provide a third option that allows users to receive less targeted ads based on minimal data.
Under this new model, users choosing the less personalised ad option will see advertisements based only on their recent activity during their current session on Facebook or Instagram, going back no more than two hours. These ads will also take into account limited personal details such as age, gender, and location. This approach is a significant departure from Meta’s usual practice of using a comprehensive history of user activity across its platforms to tailor ads to individual preferences and behaviours.
According to Meta, this reduced targeting will likely lead to ads that are less relevant to users’ specific interests, but it allows individuals greater control over the type and extent of data collected for advertising purposes. “While this new choice is designed to give people additional control over their data and ad experience, it may result in ads that are less relevant to a person’s interests,” Meta explained in a blog post. Users choosing this option might also experience brief, unskippable ad breaks.
Background: Regulatory Pressure and Compliance
Meta’s decision to introduce a less personalised ad option follows a protracted battle with EU regulators. European lawmakers have increasingly scrutinised the advertising models of large tech companies, with Meta particularly in the spotlight due to its extensive data-gathering practices. The EU’s General Data Protection Regulation (GDPR) requires companies to obtain explicit user consent before processing personal data for targeted ads, a rule enforced rigorously by the bloc’s regulatory bodies.
The European Union’s top court ruled earlier this year that Meta must obtain users’ consent before delivering tailored ads, casting doubt on the viability of Meta’s traditional ad-targeting model, which relies heavily on data collected from users’ interactions across its platforms. This ruling led to Meta’s initial introduction of a subscription option, which allowed users to pay a fee to avoid seeing personalised ads altogether. However, the EU saw this as a restrictive choice, effectively monetising users’ privacy by making ad-free experiences available only to paying subscribers.
Subscription Price Cuts for Ad-Free Option
Alongside the announcement of the new ad option, Meta revealed that it will be reducing the subscription cost for the ad-free experience in the EU. Web users will now pay €5.99 per month, down from the previous rate of €9.99, while iPhone and Android users will pay €7.99 instead of €12.99. These price cuts reflect Meta’s ongoing attempts to make the ad-free option more accessible to a wider audience, especially as it navigates the EU’s competitive and privacy-focused regulatory landscape.
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Implications for Users and Advertisers
Meta’s new, less personalised ad option is likely to alter both user experiences and advertiser strategies. Users who opt for this model will enjoy more privacy, but at the cost of receiving less relevant ads. Advertisers, meanwhile, may need to adapt their targeting strategies in the EU to cope with the reduced data availability. This shift could potentially diminish the effectiveness of digital advertising on Meta’s platforms in the region, as fewer data points mean less precision in matching ads to users’ interests.
By introducing a less personalised ad option, Meta is positioning itself as responsive to user demands for greater privacy and data control. However, this decision also signals a shift in the landscape of online advertising, especially for tech companies operating in regions with strict privacy regulations. This development could prompt similar moves by other social media platforms that rely on ad revenue, as they look to navigate regulatory pressures and maintain user trust.
The introduction of a non-personalised ad experience in the EU underscores the impact of regulatory pressure on major tech firms. The European Union has emerged as a global leader in data privacy regulation, setting standards that other regions may follow. With Meta now offering greater flexibility in how its users experience ads, other tech companies may be compelled to reevaluate their data policies and advertising models to align with rising expectations for privacy and transparency.
