Meta (Facebook) Adds 30% Surcharge To Advertisers (2024 Policy Update)

my face lolAndrew PalaciosFebruary 23, 2024

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In a significant policy update, Meta has announced its decision (which was thinly veiled as a simple press release) to implement an additional charge for advertisers using boosted posts on its platforms, a move directly linked to Apple’s imposition of a 30% transaction fee on in-app purchases.

This change marks a pivotal moment for digital advertising on major social networks, affecting a wide array of small businesses that rely on Meta’s platforms for promotion. By passing on the cost of Apple’s fees to advertisers, Meta’s decision not only makes it more expensive and difficult for small business owners to generate revenue from their platform, but it also goes to show business owners that relying heavily on a single channel for their marketing/advertising efforts is a recipe for potential disaster when something like this happens.

Why is this a big deal for small businesses?

Meta’s decision to pass on Apple’s 30% fee to advertisers using boosted posts has significant implications, particularly for small businesses. This policy introduces an additional financial burden for those relying on social media visibility, potentially hindering their marketing effectiveness.

What’s the Meta Ads Manager?

There’s a knowledge gap among small business owners about the advantages of using Meta’s Ads Manager platform, which offers more efficient advertising methods than boosted posts.

The Meta Ads Manager platform offers advanced targeting, budgeting, and analytics features that are not available with boosted posts. These tools enable advertisers to refine their audience selection, optimize their ad spend, and analyze campaign performance in depth. Without leveraging these features, businesses may end up paying more for less targeted exposure, potentially leading to lower engagement rates and a higher cost per acquisition.

What does this mean for small businesses who advertise on Facebook or Instagram?

The lack of awareness about the advantages of using Meta’s Ads Manager over boosted posts can have a significant negative impact on businesses. This unawareness often leads to:

  1. Increased Advertising Costs: Without targeted strategies, businesses may see their advertising budgets deplete faster with lower ROI.
  2. Lower Engagement Rates: Boosted posts may not reach the most relevant audience, leading to lower engagement and conversion rates.
  3. Missed Opportunities: Advanced features like A/B testing and detailed analytics in Ads Manager can uncover insights to improve campaigns, which businesses missing out on can hinder growth.
  4. Inefficient Use of Resources: Time and money invested in less effective advertising methods could be better spent on strategies that drive tangible results.

We view Meta’s policy as potentially exploitative, particularly for small business owners who might not be fully aware of the more cost-effective advertising tools available. It’s crucial for digital platforms to practice ethical advertising by ensuring transparency and fairness in advertising costs, allowing businesses of all sizes to make informed decisions about their advertising strategies.

How can you create a Meta Ads Manager Account?

We recommend that businesses take the initiative to learn how to use Meta Ads Manager for more efficient ad management or seek professional assistance from agencies specializing in social media advertising.

This approach can help optimize advertising spend, ensuring better returns on investment.

Click here to get started.

Get a free consultation today with Revved Digital!

Navigating the complexities of social media advertising requires understanding and strategic planning. We encourage businesses to reach out for a complimentary consultation on Facebook/Instagram ads, helping them to effectively navigate the advertising landscape and achieve their marketing goals.

Stay informed, and whatever you do… don’t boost posts on Facebook!

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