The Verge claims that last week, Meta circulated an internal memo informing staff members of this strategy. This would be the company’s first significant venture into paid features, the magazine notes. The internet giant previously disclosed its first-ever year decrease in ad revenue in Q2 2022. The company was impacted by adjustments to iOS’s ad tracking and a general fall in digital advertising spending. It is currently exploring for additional revenue streams.
Facebook, Instagram, and WhatsApp’s parent company, Meta, plans to upgrade the three social media platforms with additional paid services. The business is establishing a new section to focus on possible features that it can encrypt behind a paywall. The team, known as New Monetization Experiences, is directed by Pratiti Raychoudhury, chief of research at Meta.
Ads will still be there on Meta apps, of course. The business won’t allow customers to pay to have their apps removed from the platform. The company seeks to “create new types of products, services, and monetization experiences,” according to John Hegeman, VP of Monetization at Meta, who is in charge of the New Monetization Experiences division. creating experiences that individuals would be thrilled to pay money for.
For creators, Facebook and Instagram already provide a variety of paid tools. By tipping them or subscribing to their channels, these services enable fans to show support for their favourite creators. At the moment, Meta doesn’t currently receive a portion of these earnings. Even said, the business doesn’t want this fee to be the only significant source of income it has besides advertising.
Unfortunately, he didn’t go into detail about the features they are considering. John suggested that Meta start off slowly with this strategy. It doesn’t believe that paid features will generate much money in the near future. Instead, over the next five years, the corporation hopes to progressively scale up this strategy for generating revenue from its social media platforms and integrate it into its overall operations.