An important update for Facebook and Instagram advertisers is on the horizon. Starting next week, when you purchase ads through an iOS device, you will incur an additional 30% fee that goes directly to Apple. This change, initially introduced to U.S. advertisers in February, is now set to be enforced for all advertisers globally. To bypass Apple’s extra charges, advertisers can opt to purchase ads through facebook.com or instagram.com on a desktop device. Meta has introduced new procedures on the web to enable boosting while avoiding Apple’s additional fees, providing the same functionality available on iOS devices.
Pedro Pavón, Meta’s Director of Privacy & Fairness Policy, has criticized Apple’s implementation of the new fee structure, labeling it as anti-competitive. According to Pavón, Apple’s 30% tax on in-app purchases gives them an unfair advantage over competitors, making it challenging for them to compete on pricing. The sentiment is shared by regulators globally, who support app developers and consumers in promoting increased choices and lower fees. EU investigators have already lodged charges against Apple for the change, while a federal judge in the U.S. has reprimanded Apple for non-compliance with a court order related to its fee structure.
As of July 1st, Apple will continue to impose additional charges on advertisers purchasing in-app ads. The simple workaround to avoid these extra costs is to utilize a desktop PC for ad purchases instead of swift in-app boosting. However, this may not always be a feasible option for individuals who work on the go, which is a scenario Apple is banking on to maintain its advantage. Apple’s rationale revolves around the idea that these companies would not reach their audiences without its platform and, therefore, should be charged for this access. Various businesses, including Epic Games, the developer of Fortnite, have challenged Apple over its app taxes, leading to concessions that allow app makers selling to U.S. customers to redirect users to external websites for payment.
For advertisers looking to avoid Apple’s taxes when purchasing Facebook and Instagram ads, it is essential to update their approach. Meta has provided guidance on how to sidestep Apple’s fees, emphasizing the need for advertisers to adapt to the evolving landscape of digital advertising. In the face of mounting regulatory scrutiny and industry backlash, advertisers must stay informed and agile in their strategies to mitigate the impact of Apple’s fee structure.
The impending 30% fee on Facebook and Instagram ads purchased through iOS devices is set to reshape the dynamics of digital advertising. Advertisers and businesses must remain vigilant and adaptable in navigating these changes to maintain competitiveness and cost-effectiveness in their online marketing efforts.
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