Will Meta woo users with its new subscription service?
How will Meta’s new subscription service go down with users? Caroline Gosney of Make Honey contemplates whether it has any real potential.
Subscription models already work for YouTube and Discord, but how will it bode for Meta? / Dima Solomin
Social media has revolutionized the way we communicate, connect, and share content. As platforms have evolved, they’ve been looking for new ways to generate revenue, especially in light of sluggish growth. Enter subscription services.
Facebook and Instagram, two of the world’s largest social media platforms, have announced that users will now be able to pay for blue tick verification. Initially launching in Australia and New Zealand, it’ll set you back $14.99 on iPhone. Meta Verified has arrived.
Not yet available for businesses, ‘blue ticks’ will give paying users increased visibility of their posts, protection from impersonators and easier access to customer services. So far, so good. Or is it?
Paying for blue ticks has caused headaches for other platforms. Twitter, in particular, had to roll back its pay-for-verification feature last year when people started impersonating brands and celebrities by paying for a badge. But Meta is not alone in its march towards pay-to-play – YouTube, Discord and Reddit all use similar subscription models.
But why now?
Like everything social, it all comes down to the d-word: data. Our data is how platforms like Meta make their money. All those late-night searches for the perfect fancy dress costume, frantic scrolls on your commute for a new set of headphones, and last-minute dog-themed birthday presents make you the commodity.
Primarily, your information is shared with partners and organizations that pay for the right to get your data – mostly advertisers. Then there are ‘vendors’, marketing and research companies that buy and distribute ads for the partners. Finally, it’s a dive into the shadowy realms of ‘third parties’ who Meta identifies as ‘researchers’. Think Cambridge Analytica and destabilizing governments.
Help or hindrance?
In some cases, users can find targeted ads helpful, especially if they solve a problem or help them to discover something new. But more and more people see it as an invasion of privacy.
The difference is now we all know it’s happening and we’re savvier than we’ve ever been. No one likes the eerie feeling that your phone is listening to you talk about that new fridge you need to order whilst tee-ing up some white goods-related promoted content.
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When Apple launched an optional feature stopping your online activity from being tracked it turned out that if you ask people whether they mind companies watching what they do and where they go online, most of them chose to opt-out.
That presents a problem for platforms that use targeted ads as their main revenue stream. What subscription services do is keep platforms like Meta’s revenue up without targeting ads at users who pay for the privilege.
Money well spent?
But what if the gamble doesn’t pay off? What would it mean for Meta if users don’t buy into the new subscription services? Will brands have to look at other revenue streams or will they slowly strip platform access back and keep the ‘big’ features for paid-only users?
This new move hints at a lack of innovation at Meta, which has spent billions on a push into the metaverse which has no clear business model for brands. Meta is trying to monetize their installed base in a move that could completely backfire, stalling already limited growth and alienating consumers.
Times, it seems, are tough for Big Tech with redundancies almost across the board and lackluster post-pandemic growth but times are also tough out here in the real world. Cozzy Livs (cost of living crisis) anyone?
Will users want to cough up a tenner for an enhanced experience? Are the subscription add-ons enough to get people on board? If your data is more protected, is it worth the outlay? Watch this space.
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Make Honey is an award-winning communications agency that creates impact for brands. Our clients cut through the media maelstrom and secure sales through PR, content and social-first storytelling.Find out more