Snapchat is diving into new waters, offering a premium Snapchat+ subscription tier that eradicates most ads from your in-app experience. This step aligns with evolving data privacy regulations in the EU while gauging user interest in paying for an ad-free journey within the app.
Shared by Jonah Manzano, a sneak peek reveals that the Snapchat+ tier removes Story and Lens ads, leaving subscribers with a relatively ad-free zone. While sponsored places and paid promotions within My AI responses may still appear as Snapchat experiments with AI chat platform monetization, users can largely wave goodbye to ads for a monthly fee of $15.99 AUD or about $US10.50.
Yet, this upgraded offering isn't currently available in the U.S., considering Snap's heavy reliance on ad revenue from the North American market. Snap's revenue predominantly stems from American and Canadian users, indicating the potential for a higher-priced ad-free tier in the U.S. market.
Snap's Q3 2023 earnings suggest a potential to charge more for an ad-free tier, considering its per-user ad exposure revenue. Contrarily, Facebook, with higher ad revenue per U.S. user, faces a different scenario, offering varied possibilities for an ad-free option.
While the focus seems to hover around the EU, aligning with its data usage regulations and allowing European users to opt out of targeted ads, Meta (Facebook's parent company) might have found a workaround. Offering an ad-free opt-out, albeit at a price, satisfies the requirement, allowing users to restrict Meta's data usage for ad targeting by paying for this privilege. However, Meta may prefer users sticking to the ad-based model, yet the option ensures compliance with the new EU regulations.