Meta has recently introduced major changes to its advertising model in the EU, driven by new regulations and user privacy preferences. For businesses, these updates bring both challenges and opportunities. Whether you're an SME seeking to adapt or a brand looking to maximise your ad spend and performance, understanding these changes is key to staying ahead. Let’s get into how this could impact your business—and how you can respond.

‍

Reduced Subscription Pricing

Meta has lowered the price of its “Subscription for no ads” service by 40%. This makes it one of the most affordable options in the market. While this change primarily affects consumers, you need to consider how this will impact your ad performance if more users opt for ad free experiences. Use this change as a chance to refine your strategies for organic reach by creating more engaging content that thrives in an ad-free environment.

‍

Less Personalised Ads

Users now have the choice between personalised and less personalised ads, respecting the growing demands for privacy. Less personalised ads use contextual data like age, location, gender, how you engage and the content you’re viewing, rather than behavioural insights. This may result in ads feeling less relevant to users, reducing their impact as uninterested people may see them and fail to connect. However, contextual targeting allows you to reach a broader audience, creating opportunities to increase your brand and product awareness.

‍

Ad Breaks

To address concerns about less personalised ads reducing value for advertisers, Meta has introduced unskippable ad breaks to ensure your ads reach a wider audience. While this update may negatively affect your business, Meta ensures your ads are still seen for a longer duration, though they may reach the wrong audience.

‍

Personalised Ads

Despite regulatory pressures, Meta continues to offer personalised ads in the EU. These ads remain highly effective for businesses, particularly SME’s, looking to connect with specific audiences. However, you must be prepared for stricter compliance requirements around data usage and user consent. Meta anticipates that users will prefer personalised ads for their added value. This new regulation could make it more expensive and challenging to target the right audience, potentially hindering the economic growth the EU aims to foster. To stay competitive, you’ll need to diversify your strategies and adjust to consumer behavior.

‍

How will this impact your business?

With Meta’s updates shifting towards privacy-first ads, it’s crucial for your brand to stay adaptable as regulations evolve. This is a chance for you to try out new strategies—whether that’s adjusting your advertising approach as digital advertising becomes less efficient or exploring broader targeting to reach new audiences based on contextual data.

‍

Conclusion

Meta's new advertising model in the EU presents both challenges and opportunities for your business. While some of these changes may seem daunting, they also offer a chance for you to get creative and adapt. Embrace the shift towards less personalised ads, take advantage of the lower subscription costs, and get ready for the future of digital advertising!

‍

If you need help optimising your Meta ad strategy, contact us now.

‍

The PK team.