Meta plans to shift the burden of Apple's 30 percent fee onto advertisers for boosted Facebook and Instagram posts. This fee applies exclusively to Meta's iOS apps.
A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 18, 2024, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp.
Boosting, Avoiding Apple Service Charges
Following Apple's 2022 App Store policy update, which extended the 30 percent cut on digital purchases to boosted posts, Meta has opted to transfer this additional cost to advertisers.
Commencing later this month in the US and subsequently in other markets later in the year, Engadget reported that Apple will take charge of billing for boosted posts within the apps.
Consequently, advertisers will face higher costs when promoting posts on the Instagram and Facebook iOS apps due to the imposition of the 30 percent fee.
To circumvent Apple's fee, advertisers can opt to utilize the mobile web or desktop platforms instead. Meta asserts that its options are limited, as it must adhere to Apple's regulations or eliminate the boosted post feature from its iOS apps altogether.
Expressing concern for small businesses, Meta emphasized in a blog post that removing the ability to boost posts could hinder their visibility and deprive them of a valuable promotional tool.
Explaining the Changes
Meta is faced with a decision: adhere to Apple's directives or eliminate boosted posts from our applications. Removing the option to boost posts isn't ideal, as it could adversely impact small businesses by reducing visibility and potentially depriving them of a valuable promotional tool.
As stated in its press release, Meta's commitment is to provide businesses with flexible and convenient solutions to navigate this transition and optimize their advertising investments. In line with this goal, we've explored alternative methods for boosting posts.
Advertisers now have the option to utilize Facebook.com and Instagram.com via desktop or mobile web browsers to boost their content. This enables them to access all the same features available when boosting posts from the iOS apps, while bypassing the Apple service fee.
A significant change spurred by Apple's update involves adjustments to the payment process for advertisers boosting posts via Facebook and Instagram iOS apps.
Unlike the previous method where charges were incurred post-boost, iOS users will now be mandated to make upfront payments and preload funds into their accounts for boosting posts.
Should advertisers opt to add prepaid funds via the Facebook or Instagram iOS apps, they'll be subject to the Apple service charge.
Alternatively, if they choose to preload funds through their payment settings on desktops or mobile web browsers, they can utilize these funds for boosting content across various platforms, including the iOS apps, without facing additional fees.
This revised payment mechanism, along with the accompanying Apple service charge, is initially being implemented in the US, with other markets slated to follow suit later this year.
