Popular social media platforms like YouTube, Twitter and many other platforms already introduced ad free models. Users need to pay a monthly or yearly subscription to enjoy that feature. In that queue, Facebook and Instagram are going to join soon as per a recent announcement by Meta. Initially, this feature will be available for EU users.
Many experts believe that these kinds of raising ad free models will impact digital advertising in many ways.
Impacts of ad free model to the platforms
Revenue: Social media platform’s main source of income comes from advertisements. Even though they are adopting ad free models, their income stream won’t affect them because they generate their income from subscriptions.
Data Privacy Focussed: User’s data privacy is a major concern around the world. Many countries introduced strong privacy regulation policies to save their people’s personal data online. With those privacy laws, targeting users online is very difficult. Ad-free models give them the opportunity to function as more privacy focused.
Impacts of ad free model to the digital advertising
User Reach : Advertisers main goal is to display their advertisements to their potential audiences. If more people adopt ad free models, then they can’t be reached by the advertisers. Also, possibility for reduced reach.
Limited Data Access: Ad free model social media platforms mostly focused on user experience and privacy. With lower capability of limited data access, targeting becomes less precise. It could potentially affect the advertising campaign performance.
Shift marketing strategies: When ad free model social media platforms are less effective for advertising, advertisers need to shift their marketing strategies. Maybe that could be extra work for advertisers.
Ad free model platforms
YouTube Premium : People can access content from YouTube ad free. When you buy YouTube music premium, you can hear songs from background and ad free.
X (Formerly Twitter) : People can access X platforms completely when they subscribe to premium plans and additional features.
Facebook and Instagram: As per Meta announcement, Facebook and Instagram are going to adopt ad free models in the EU and people need to subscribe to plans.
Conclusion
In recent years, people are showing their interest in ad free models by paying a fee. Many people think that people would leave after Elon Musk launched subscription models. But nothing happened like that. That market success pushes the meta to launch ad free models on their platforms.
When most people are ready to pay and enjoy ad free models, digital advertising will get impacted. Because, advertisers can’t reach their potential audiences through these platforms.
