Meta Platforms Inc. has released new guidelines for small businesses advertising on Facebook and Instagram, providing a way for them to avoid the fees imposed by Apple Inc. The guidance advises companies to purchase ads through a web browser instead of using the iOS apps for Facebook and Instagram, allowing them to sidestep the Apple commission that recently took effect.
Apple’s policy requires advertisers to make in-app purchases when they pay to boost social media posts, granting them greater exposure. However, Apple takes up to a 30% cut from in-app purchases made through its iOS software, resulting in a loss of ad revenue for Meta.
The tension between Meta and Apple has been escalating in recent years. Meta has accused Apple of undermining others in the digital economy, while Apple CEO Tim Cook has criticized Meta’s privacy practices. Previous changes implemented by Apple have already caused Meta significant financial losses.
Apple’s new policy will first impact the United States before extending to other countries later this year. It will also require advertisers to pay for ads upfront when purchasing through an iOS app. This change primarily affects Meta’s smaller advertisers, many of whom rely on boosted posts as their sole form of advertising.
These developments come amid broader criticism of Apple’s App Store rules, with companies like Spotify Technology and Epic Games alleging unfair policies. While Apple has made changes to comply with new European legislation, these modifications have faced their own share of backlash.
Through these new guidelines, Meta aims to support small businesses by helping them navigate Apple’s fees. By purchasing ads through a web browser, these businesses can bypass the additional costs imposed by Apple’s in-app purchase requirement. This move demonstrates Meta’s commitment to finding workarounds that benefit their advertisers.
In an increasingly competitive digital advertising landscape, it remains to be seen how Meta’s measures will impact its relationship with Apple and the overall advertising ecosystem. As both companies continue to jockey for control and influence, small businesses and advertisers will need to adapt to changing strategies and platforms in order to sustain their online presence and reach their target audiences effectively.
