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The Journal.

Would You Pay to Use Instagram Without Ads?

The Journal.

The Wall Street Journal

Business News, News, Daily News

4.25.8K Ratings

🗓️ 2 November 2023

⏱️ 15 minutes

🧾️ Download transcript

Summary

Meta, the parent of Facebook and Instagram, will soon find out how much users in Europe are willing to pay to access its social media platforms without ads. Meta’s subscription plan is the company’s latest move to address data privacy concerns from European Union regulators. WSJ’s Sam Schechner explains. Further Reading: - Meta Pauses Ads for Users Under 18 in Europe as It Rolls Out Subscriptions - Meta Plans to Charge $14 a Month for Ad-Free Instagram Further Listening: - How Apple Lost to the EU - Meta’s Metaverse Mess Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

What kind of ads do you get served on Facebook or Instagram?

0:10.4

You know, there was a time when Instagram really thought that I was like a woman judging

0:16.5

by the number of menstrual products that I was advertised and I found it actually pretty

0:20.2

hilarious.

0:23.0

That's our colleague Sam Schechner.

0:24.9

He's a technology reporter based in Paris.

0:27.6

But then sometimes it's uncannily accurate to what you're interested in or looking for

0:32.1

and then, you know, it's like, well, I guess, yeah, sure, I will buy that product.

0:37.2

I get a lot of ads for cooking, various recipe websites and Instagram has figured out that

0:45.7

I have, you know, young kids and turns out they need to eat every day.

0:52.6

Have you ever actually bought anything from these ads?

0:56.0

I actually did, um, I bought like a bike bag, a bike bag that, like, clipped onto my

1:02.9

bike rack, which turns out to be something I use all the time because I try to bike

1:07.4

to work.

1:08.4

They know what ads to serve you.

1:13.5

Advertising is crucial to Metta's business.

1:16.1

Last year, Metta, which is the parent of Facebook and Instagram, earned more than $113 billion

1:22.2

in ad revenue.

1:24.0

But that business model has come under threat, especially in Europe.

1:27.7

In recent years, the European Union has set out to rein in how tech companies collect

1:32.4

and use consumer data.

1:34.7

That's pushing Metta to try something at once rejected, an ad-free subscription option.

...

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