Mark Zuckerberg’s advertising revenue has dropped significantly. To make up for these losses, Meta intends to offer paid features for two of its social networks.
Last month, Facebook for the first time in its history announced a decline in revenue. To keep up with the competition, the company, in particular, decided to display more posts from unfollowed accounts on Instagram and Facebook. But it looks like the company wants to boost speed by offering paid options on Facebook, Instagram, and WhatsApp.
Meta – Credit: Meta
This is the first time Meta has seriously invested in building paid features for its core social apps, which boast billions of users. The project is being spearheaded by a new service called New Monetization Experiences, which will be led by Pratiti Raychoudhury, former head of research at Meta. The company has been hit hard by Apple’s changes to ad tracking on iOS and broader digital ad spending cuts.
Meta: paid options won’t get rid of ads
However, Meta has no intention of ignoring ads. John Hegeman, vice president of Meta, said the company is still looking to grow its advertising business and has no plans to provide a pay-to-opt option for its apps.
“I think we see opportunities to create new kinds of products, features and experiences that people would be willing to pay for and happy to pay for,” he said. However, John Hegeman declined to reveal any paid features the company is considering.
It should be noted that the main source of income for Meta, although declining, remains targeted advertising. Thus, paid features will only be a means of earning additional profit. The company’s vice president adds, “On the other hand, I think that if there are opportunities to create new value and significant revenue, and provide some diversification, obviously this will be something that will be attractive.”