Will social media become paid? What can Facebook users expect?

In early May, Apple officially unveiled iOS 14.5, which caused quite a stir. When opening the Facebook or Instagram app, users see a special pop-up message. It states that iOS 14.5 requires developers to obtain user consent to track certain device data to improve ad delivery.

Facebook initially opposed this positioning and even tried to persuade Apple not to include a clause requiring consent for tracking in its user agreement. But to no avail, and now it has no choice but to adhere to Apple's requirements. Therefore, the company is doing everything possible to convince its audience of the necessity of such consent.

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Is Facebook afraid of losing advertising revenue?

If Facebook loses advertising revenue to Apple, the company's apps may become paid. This means that the release of iOS 14.5 could lead to more ads in the App Store.

The release of iOS 14.5 forced Facebook to expand on the topic of user tracking. The company attempted to persuade its app audiences to consent to the use of sensitive data, which includes Google Ads tools.

Of course, it would be improper to say this outright, but the underlying message is that this will allow the corporation to further develop and earn more money. The company's marketers were looking for a lever to influence their audience. Something that the average user wouldn't resist and would actually click the "Agree" button when they saw the tracking prompt on their iPhone.

Facebook apparently decided not to put all its eggs in one basket and tried to find a successful trigger that would engage as many users of its services as possible. Therefore, anyone visiting the company's app now sees three reasons in the consent window for tracking, explaining why they should accept the terms:

• access to personalized advertising that meets the user's interests, rather than random advertising;
• obtaining support from companies that offer advertising in Facebook apps to attract customers;
• the ability to continue using Facebook services for free, which directly depends on the company's advertising revenue.

And while the first two points may resonate with users, they're certainly not as strongly as the third ("Help keep Facebook free of charge"). Free use of Facebook services, including Instagram, has long been the norm for everyone. So what now? Will they have to pay? Even if it's just a nominal amount. But for many, the issue isn't the amount, but the very fact of submitting to the requirement to pay for access to apps they've long and successfully used.

Facebook justifies its actions as follows:To help people make informed decisions, we share our screen with Apple's. It provides additional information about how we use personalized advertising to support small businesses and keep apps free. By accepting the Facebook and Instagram requests, you'll see the same ads you see. By declining, you'll understand that they won't disappear, but they will be less relevant. By accepting Facebook's requests, you're not taking any risks; they don't collect any new types of data. But your voice allows us to continue doing what we've always done.

Instagram: The End of the Free Era?

A closer look at the situation reveals that Facebook is being cunning. Apple is well known for its opposition to developers in any way pushing users to consent to the tracking of their personal data. While the social network clearly isn't pressuring anyone, Facebook is indirectly conveying to users the idea that reduced advertising revenue could trigger a switch to a paid model.

And these revenues are likely to fall if the majority of users refuse to provide their advertising identifiers and do not want to receive targeted advertising.

Instagram likely won't become a completely paid service. However, the introduction of paid features is a very real possibility. For example, the platform could launch stores for bloggers and charge a commission on sales.

But charging a fee for access to Instagram is not in Facebook's interests, as it would guarantee a reduction in its audience, most of whom are not willing to pay for using social media in any form.

Moreover, for many, Facebook and Instagram are already more than just a means of communication and publishing. However, if you force your audience to pay, they'll likely refuse and switch to competitors.

So Facebook is likely currently considering new monetization methods. The company likely doesn't want to conduct research, audience testing, and so on. It hasn't actively done so before. But since the company certainly won't sacrifice its huge audience, it will have to reinvent the wheel.

She needs to figure out what special thing she can offer to a paying audience without losing the army of users who will still watch ads, even if they are not as relevant as before.

Time will tell how the world's largest social network will get out of this situation.