Starting July 1 Apple will extend its 30% fee on Facebook and Instagram ad purchases made through iOS devices to advertisers worldwide.
Why it Matters
This move could significantly affect digital advertising costs and strategies for businesses of all sizes, potentially altering how marketing budgets are allocated towards mobile advertising.
The Big Picture
Initially rolled out for U.S. advertisers in February, this global expansion marks a major shift in the pricing of social media advertising on mobile devices.
Details
Scope: The fee applies to ad purchases made via iOS apps but can be avoided by using desktop web browsers.
Meta’s Response: Meta has updated its web platforms to offer the same ad-boosting functionality available on mobile apps.
Regulatory Criticism: EU regulators and a U.S. federal judge have criticized Apple’s fee structure.
What They're Saying
Pedro Pavón, Meta’s Director of Privacy & Fairness Policy, calls the fee "anti-competitive" and argues that it gives Apple an unfair advantage.
Apple's Position
Apple argues that it’s entitled to charge for access to its platform’s audience, justifying the fee as a standard practice.
Context
This development is part of an ongoing battle between tech giants over app store policies and revenue sharing, highlighting the friction in the digital advertising ecosystem.
Next Steps for Advertisers
Advertisers will need to adapt their strategies to avoid the fee, potentially shifting more activity to desktop platforms.
How to Avoid the Fee
Meta has provided guidance on how to purchase ads without incurring Apple’s 30% charge.
Bottom Line
This change could reshape mobile advertising practices and further intensify scrutiny of Apple’s App Store policies, impacting how businesses approach their digital marketing efforts.