How would this impact advertising?
Meta is rumored to be considering an ad-free paid subscription option in the EU. Advertisers need to ask how this might impact them.
First, imagine the paid ad-free option is successful in the EU. That could dramatically impact advertising in these countries.
The people most willing to pay for a subscription are the same people advertisers would want to Reach measures the number of Accounts Center Accounts (formerly users) that saw your ads at least once. You can have one account reached with multiple impressions. More. They’re most likely to buy something online.
If you remove that group, the remaining population will still see ads. It may be a less valuable targeting pool. That may result in less effective ads, at least for driving sales. The competition may drop and costs to reach these people may fall as well.
If this is successful for Meta, you know what’s coming next, right? If an ad-free paid subscription is rolled out in the EU, other countries are surely next. Possibly the rest of the world.
This is based on a whole lot of “what ifs” and predictions, but it’s a reasonable possibility. What happens to ad performance if the people most likely to convert are removed by signing up for this?
Meta needs to consider this, too. What do you think?