šŸ“± Appleā€™s App Store Guidelines and Metaā€™s Response

Apple has responded to Meta’s plan of charging a 30% fee on boosted posts bought through the App Store.

Apple recently updated its App Store Review Guidelines, causing a ripple effect in the digital advertising world. The update clarifies that sales of ā€œboostedā€ posts in social media apps must use the App Storeā€™s in-app purchase system, thereby giving Apple a 30% cut of these sales. This move has led to Meta, the parent company of Facebook and Instagram, announcing that it will soon charge a 30% fee to advertisers who purchase boosted posts through its iOS apps. Letā€™s dive into the details and implications of these changes.

Metaā€™s Announcement and New Policies

šŸš€ Meta has made an official announcement that it will be implementing a 30% fee for advertisers who buy boosted posts through Facebook and Instagram apps on iOS. This fee is meant to offset the amount that Meta owes Apple for each sale. Advertisers will also be required to pay in advance, a departure from Metaā€™s usual practice of collecting payment after the posts are shown. The new policy will go into effect in the U.S. later this month and in other countries later this year. However, advertisers can still avoid the 30% fee and prepayment by purchasing boosted posts on the web.

Metaā€™s Justification and Industry Impact

šŸ” According to Meta, it had to comply with Appleā€™s guidelines to ensure that boosted posts remain available on their apps. Removing the ability to boost posts would negatively affect small businesses by making the feature less discoverable, potentially hurting their ability to promote their businesses effectively. Millions of small businesses rely on boosted posts to reach larger audiences on Facebook and Instagram. Hence, while Meta may be passing on the added cost to its customers, it argues that doing so is necessary to support these businesses.

Appleā€™s Response and the Digital Economy

āš”ļø Apple, on the other hand, maintains that app developers have always been required to use the in-app purchase system for the sale of digital goods and services. Appleā€™s stance is that boosted posts are a digital service, making it logical for them to fall under the umbrella of In-App Purchase. While this requirement has been in place, it remains unclear why Apple previously allowed Meta to charge advertisers directly for boosted posts without using the in-app purchase system. Apple did not provide an explanation when asked about this discrepancy. Nevertheless, Apple asserts that it has given Meta ample opportunity to comply with the App Store Review Guidelines.

The Future of Boosted Posts and Ad Campaign Management

šŸ”® Moving forward, Meta suggests that businesses can use the Meta Ads Manager app on iOS to set up and pay for their ad campaigns without using Appleā€™s in-app purchase system. By doing so, businesses can avoid the 30% fee and adhere to the App Store Review Guidelines, which permit direct payment options for apps designed solely to manage ad campaigns. This alternative presents an opportunity for businesses to maintain control over their advertising expenditures.

šŸ“¢ Readersā€™ Questions Answered

  • Q1: How will this change impact small businesses? A1: Small businesses heavily rely on boosted posts to promote their products and services. With the added 30% fee, they will need to carefully evaluate the ROI of boosted posts and explore alternative advertising strategies.

  • Q2: Are there any alternatives to using the iOS apps? A2: Yes, advertisers can bypass the 30% fee by purchasing boosted posts directly on the web at Facebook.com and Instagram.com. Businesses can also utilize the Meta Ads Manager app on iOS, which offers direct payment options and aligns with Appleā€™s App Store Review Guidelines.

  • Q3: Will other platforms follow suit in implementing similar fees? A3: Itā€™s possible that other platforms may consider following Appleā€™s lead and implement fees for in-app purchases. The financial impact on advertisers and the potential for increased revenue for these platforms may be influential factors.

šŸ“š Further Reading

For more information on this topic, check out these relevant articles:

  1. Apple Starts Letting Developers Add Alternative App Marketplaces Via App Store Connect
  2. Meta Announces New Ways for Small Businesses to Boost and Avoid Apple Service Charges
  3. Apple Continues to Evolve Its Policies to Grow Its Own Business

Remember, knowledge is power in the ever-changing world of technology. Stay informed and adapt to ensure your digital advertising strategies yield the best results. šŸ’Ŗ

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