Apple to Charge for Boosting Meta Posts on iOS Apps

Greetings!

As part of updated App Store guidelines announced last year, Apple will now require Meta Platforms, the parent company of social media giants Facebook and Instagram, to utilize Apple's proprietary in-app purchase system for all post "boosting" transactions conducted on the iOS versions of the Facebook and Instagram apps.

This directive forces Meta to pay an extra 30 percent commission fee to Apple on top of any fees that advertisers and businesses already directly pay Meta simply to "boost" the reach and visibility of their social media posts - essentially a disruptive Apple tax that threatens to take a huge bite out of the post-promotion revenue Meta generates from small businesses and creators trying to maximize their social media marketing efforts and results.

Policy Live in the U.S., Expansion Expected in Future

The policy shift went into effect this month in the U.S., with a wider rollout expected later this year.

• Apple's 30 percent Tax: The 30 percent commission Apple takes on any transactions made through in-app purchases has been a subject of controversy. But now Apple specifically targets social media advertising, requiring their substantial fee to be paid for "boosting" posts.
• Workaround Option: Advertisers can still boost Facebook and Instagram posts through a web browser without the Apple tax. However, functionality is limited compared to the native iOS app experience.
• Adds Up for Small Business: While the extra 30 percent Apple grabs may be negligible for big brands, it could significantly eat into the small budgets small businesses devote to social media marketing each month.
• Meta's Message: Meta said they have no choice but to comply with Apple's fees, but made clear their frustration. They don't want to remove post boosting altogether since it would "hurt small businesses" that rely on the feature.

Understanding Post Boosting: A Closer Look

When an advertiser "boosts" a social media post, they are paying the platform to increase the post's reach and visibility to gain more engagement. Essentially, they are paying for the social network to show the post to more users in hopes of getting more eyes, likes, comments, clicks, etc.

• On Facebook/Instagram: On Meta's platforms, users can specifically pay to boost posts to improve reach and traffic. This can be done directly by paying Meta or now through in-app purchases with Apple's cut.
• Digital Marketing Tool: Post boosting has become an important digital marketing tool, especially for small businesses, creators, and entrepreneurs on social media trying to grow an audience and promote products/services.

Advertisers Will Pay Apple Directly

As part of the change spurred by App Store rules, advertisers will be billed directly by Apple for any post boosting done in the iOS Facebook or Instagram app. In the past, transactions only involved Meta.

There are also new prepay requirements instead of the old model of getting billed only after the boosted post has run its course. This too makes it less convenient and likely more costly for small advertisers without much cash to put up.

Impact on Organic Reach and Discovery

The 30 percent Apple tax threatens to severely limit organic reach and word-of-mouth marketing on social media for smaller businesses and creators. For entrepreneurs and startups already stretched thin financially while trying to simply stay afloat, this extra fee could squeeze marketing budgets to the breaking point.

Stifling Organic Growth for Small Businesses

Many modest brands, local shops, artists, and services rely heavily on Facebook and Instagram to drive customer awareness and sales. Paying an additional 30% cut to Apple for post boosting could cripple the ability of small players to grow their audience and customer base organically. It hands yet another advantage to large corporations with extensive ad dollars while keeping startups stagnated.?

Expected Shift Away from Meta on the Horizon

The fallout of this policy change will be significant. Marketers will divert dollars away from Facebook and Instagram, reshaping strategies to focus spending where they can maximize impact as budgets tighten even further. But the walled gardens and social media giants still retain an alarming ability to make or break businesses, manipulating the competitive landscape to determine who thrives based on who can afford the new tolls imposed.

For industries deeply intertwined with Meta's platforms, businesses have little choice but to pay up or dramatically lose visibility. It raises serious questions about fair competition and highlights the tech giants' terrifying power over commerce and communication.

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