The majority of social networks and communication platforms spent years working to expand the number of users, and advertising was the primary source of money for the majority of these businesses. Recently, the scenario on the market has been quietly shifting. Even though social media and messaging apps like Twitter, Snapchat, and Telegram are still free to use, some companies have begun charging users a monthly charge. In exchange for this money, users now have access to additional features and more customization options.
“Obviously, we’re watching what’s happening in the industry,” John Hegeman, Vice President of Monetization at Meta, said in an interview with The Verge, noting that several companies have done interesting things in this space and that Meta can learn from them. “Obviously, we’re watching what’s happening in the industry.”
He did not specify what he meant by that, but as a result, Meta decided to establish a new division known as New Monetize Experiences. This division’s name gives away the fact that its mission is to create new options and experiences for Meta’s users, and that these new options and experiences will have a cost associated with them.
It is well known that Meta makes the most money from advertisements that are displayed on Facebook, Instagram, and WhatsApp; however, as a result of the global financial crisis, businesses are being more careful with their advertising budgets. Additionally, problems have been caused by the fact that Apple has changed the way that it tracks users on their devices; this does not appear to have worked well on Zuckerberg’s company’s revenue.
Hegemann asserts that advertising will continue to be the firm’s primary focus, and the company has no plans, at least for the time being, to make it possible for users to disable advertisements that appear in the apps that they use. Instead, they will concentrate their efforts on the creation of novel goods, options, and experiences that consumers will be willing to pay for. He did not elaborate on the specific novelty and experiences that we are discussing.
It is expected that Facebook’s paid options will not constitute a large portion of the company’s operations in the near future; but, in the long term, within the next five years, this may alter and become a significant source of revenue for the firm. It will be interesting to see what these possibilities are and how much people are actually ready to pay to make advantage of them if they do become available.