Meta, the owner of Facebook and Instagram, is considering introducing a paid subscription for UK users. This optional service would allow users to opt out of data tracking and receive an ad-free experience.

The move comes after a British woman took legal action against Meta, resulting in the tech giant agreeing to stop targeting ads at her.

Ad revenue vs subscription.

Social media platforms such as Meta heavily rely on ad revenue, with personalised advertising enabling their services to remain free of charge. These personalised ads are tailored to the user, based on their online activity, and increase the likelihood of engagement and purchases for advertisers using the platforms.

In the EU, Facebook and Instagram users have been able to subscribe to an ad-free experience since October 2023 following Meta’s €390m fine for breaking EU data privacy rules. Initially priced at €9.99 per month, the ad-free subscription was later reduced to €5.99 in November 2024.

Consent or Pay.

The “consent or pay” model, where users either accept tracking or pay for an ad-free experience, is becoming more commonplace. Online news services such as The Guardian, The Independent, and The Sun have adopted a similar approach, offering users a choice between a subscription or consenting to tracking in exchange for free access. Meta sees this model as an alternative to ad income and a way to adhere to Data Protection laws.

However, it is thought that UK users are likely to opt for “consent” over “pay,” as has been the trend in the EU.

While no official timeline has been set, Meta has confirmed ongoing discussions with the UK’s Information Commissioner’s Office (ICO) following a consultation in 2024.

Impact on advertisers.

While the uptake of the paid ad-free experience is expected to be relatively low, it will still reduce audience numbers. This, in turn, could lead to increased competition for ad space, driving up costs and impacting campaign reach, performance, and return on investment (ROI).

The full impact of the changes will depend on how many users opt to subscribe for the ad-free experience. However, the new subscription model may require advertisers to adapt their marketing strategy within the digital advertising space to help mitigate risks.

Emily Walton, Head of Digital at Bluesoup, commented: "This is another step towards protecting user privacy and providing an alternative revenue-generating stream from an online advertising service. There has been little noise on the market since this model was introduced as an option for EU customers, so whilst Meta hasn't specifically disclosed how many users have moved to the ad-free subscription, we do not expect a huge impact in the UK.”

If you want to find out how this change might impact how you advertise on Facebook or Instagram, or are looking for advertising opportunities on Meta, speak to the experienced Bluesoup team.