Meta Adopts Apple's 30% Fee on Boosted Posts: What Advertisers Need to Know

In a recent move that has significant implications for advertisers on Facebook and Instagram, Meta has announced its decision to pass on Apple's 30% service fee to businesses and influencers who pay to boost their posts on the iOS versions of these social media platforms. This shift, prompted by Apple's updated App Store policy in 2022, aims to align with the tech giant's guidelines, albeit at the expense of advertisers.

Key Points:

1. Apple's Policy UpdateIn 2022, Apple revised its App Store policy to extend its standard 30% fee on digital purchases to boosted posts within apps like Facebook and Instagram.
   This change specifically targeted Meta and other social media platforms allowing in-app purchases for post promotion.
   
2. Implications for AdvertisersAdvertisers using Meta's iOS apps for boosting posts will now incur an additional 30% fee, billed by Apple.
   Payments for boosted posts must be made in advance, unlike the previous model where charges were incurred after the ads ran.
   Meta emphasizes the importance of maintaining the boost post feature on iOS apps to support small businesses, despite the added cost.
   
3. Advertiser Options and WorkaroundsAdvertisers can avoid the Apple service fee by utilizing mobile web or desktop platforms to boost posts.
   Meta encourages advertisers to use prepaid funds added via desktop or mobile web browsers to bypass the Apple fee and boost posts across various platforms.
   
4. Meta's Strategy and Industry ImpactMeta's decision to pass on the Apple fee reflects its efforts to navigate Apple's regulations while continuing to provide advertising opportunities on its platforms.
   The move may generate advertiser dissatisfaction and potentially align them with Meta's broader efforts to challenge Apple's dominance in the iOS app economy.
   

Meta's response to Apple's policy update highlights the complex dynamics between tech giants and their impact on advertisers. By shifting the fee burden onto advertisers, Meta aims to maintain its advertising revenue streams while navigating Apple's regulatory framework. However, this decision may lead to increased costs for advertisers and could intensify the ongoing battle between Meta and Apple over app store policies. Advertisers should carefully consider their options and strategies for promoting content on Facebook and Instagram, weighing the trade-offs between convenience and cost-effectiveness in light of these changes.

Shakir Bukhari

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