Is Meta Joining the Trend?

From Ads to Subscriptions: How Meta is Adapting to the Changing Landscape of Social Media

“We are at the beginning of the next chapter for the internet, and it’s the next chapter for our company too.”

The moment you all have been waiting for… a Meta update. As most of us know, in October 2021 CEO Mark Zuckerberg announced Facebook’s vision to present the world with a more immersive experience through the metaverse. More recently, Meta has shared how it is adapting to the changing social media the moment it is a matter of don’t blink…or you might miss the next social media update!

TikTok the former rebellious, wonder child is now the platform that everyone secretly wants to imitate and although Meta may be secretive, they are not subtle in their strategies to piggyback off emerging social media platform trends.

The world has watched platforms such as TikTok fall out of the sky and suddenly revolutionised the social media landscape… (it basically did).

What to expect from the improved algorithm update:

Looking to cut through the noise? Meta has good news on how the recent algorithms shifts will impact the way content is prioritised and positioned in users’ feeds. In true Zuckerberg style the announcement was released through a status update on his personal Facebook page.

Zuckerberg explained that the update is focused on improving the user experience by prioritising content that is both meaningful and relevant to each individual user. The algorithm is now designed to consider a user’s individual preferences, interests, and behaviour when deciding what content to show them.

In contrast, TikTok’s algorithm is designed to prioritise content that is likely to be engaging or interesting to users based on their past behaviour, while also promoting content that is currently trending or popular. This inevitably led to the rise of short-form video content on the platform, as users continued to demand this type of content.

Meta is set to experiment with their own version of this copy and pasted algorithm strategy – revised with end users and stakeholders in mind.

It is clear Meta strives to improve the quality of the user experience and create a more engaging platform. Their algorithm update is designed to help reduce the amount of low-quality or irrelevant content that appears in users’ feeds, with the primary objective aiming to keep users on the platform for as long as possible.

Meta’s new income stream:

In February 2023, Meta launched a new service in New Zealand and Australia called Meta Verified, with plans to expand globally. This subscription service allows paying users to verify their identity using government-issued ID cards, and in turn, provides benefits such as improved protection against impersonation attacks, direct access to customer support, and increased visibility and reach.

Meta’s new verification service has the potential to create a more authentic and secure environment for users, leading to a more seamless user experience and increase audience engagement.

Meta is not alone with this move. During 2022, Snapchat successfully launched its subscription services, converting over one million users and Twitter too revamped their subscription services. It is evident social media platforms are looking to monetise their platforms through alternative revenue streams rather than solely relying on advertising income – which can be an unstable, slippery slope.

How these updates will benefit advertisers:

Meta’s decision to follow suite in the new world of social media platform subscriptions, is of no surprise. The company’s revenue has taken a significant hit in recent years due to Apple’s implementation of stricter privacy changes on iOS, limiting the company’s ability to track users’ internet activities. In response, Meta expressed its intent to develop a valuable subscription service for creators, businesses, and the wider community… inspired by the innovations and successes of other social media platforms.

Meta’s plan to develop a valuable subscription service has the ability to create a new revenue stream for the company and reduce its reliance on advertising income, further creating a more stable environment for advertisers.

The revamped digital atmosphere can benefit advertisers who are looking to meaningfully connect with their current audiences.

Metaverse and AI:

The next digital era… Facebook and it’s string of social media platforms have reached the milestone of 2 billion daily active users. Zuckerberg, Founder of Facebook has attributed this success to the progression in AI discovery engine and Reels. The management theme for 2023 is the “Year of Efficiency,” with the company’s priorities being with AI and the metaverse, while heavily investing in the improvement of monetisation efficiency. It has become clear that 2023 will be a year of substantial AI advances, and Meta aims to be centre stage in becoming a leader in generative AI.

Learn more on how your business can leverage the forever changing digital landscape. Contact us today!

Sources

1. https://about.fb.com/news/2021/10/founders-letter/
2. https://about.fb.com/news/2023/02/testing-meta-verified-to-help-creators/
3. https://techcrunch.com/2023/01/18/twitter-now-offers-an-annual-blue-subscription-for-hardcore-users/
4.https://techcrunch.com/2022/10/20/snapchat-expands-its-paid-subscription-with-story-expiration-controls-custom-sounds-and-more/

Share to Social