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November 12, 2024 – 21:32
New York, Nov 12 (EFE).- The technology giant Meta announced this Tuesday that it will adjust its advertising strategy for its Facebook and Instagram networks in the Old Continent under pressure from European Union (EU) regulations.
Cheaper subscriptions for users who do not want to see advertising, as well as the possibility of customizing free Facebook and Instagram accounts to see less personalized advertising are the new features that have been announced today.
“The changes we are announcing today meet the demands of EU regulators and go beyond what is required by EU law,” the company says in a statement.
EU regulators have an open investigation into whether Meta breaches any of their regulations and the institution is expected to reach a conclusion next year.
Meta committed today to reduce the price of Facebook and Instagram ad-free subscriptions by 40% (from 9.99 euros to 5.99 euros per month on the web, and from 12.99 euros to 7.99 euros per month on iOS and Android).
“In the coming weeks, people in the EU who choose to use Facebook and Instagram for free with ads will be able to choose to see ‘less personalized ads.’ This option is based on less data, so we will show ads based solely on context (what a person sees in a particular session on Facebook and Instagram) and a minimum set of data including age, location, gender and the way you interact with ads,” the company says regarding the free option.
The financial consequences of the move for Meta will depend in part on how many users change their ad preferences, but the company has told European regulators that it expects the European imposition of less personalized ads to have a negative impact on its business.
«Every euro spent on ads on Meta generates 3.79 euros in revenue for advertisers in Europe. This value is only available through personalized advertising, but it risks decreasing because, if EU regulation makes digital advertising less efficient, the entire European business community will suffer the consequences,” the company states by way of warning.
The Old Continent represented 23% of Meta’s income in its last financial report.
A few months ago, Meta joined other companies such as Spotify and Prada in stating in an open letter that the European Union risks missing out on all the benefits of artificial intelligence due to the bloc’s technology regulations. EFE
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