CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
META says it will stop showing ads to teens under 18 in Europe and launch new subscription-based versions of its social-media products to comply with new regulations. Users over 18 will be offered a choice to agree to let META use their digital activity to target ads or pay a monthly subscription fee (EUR9.99 on desktop and EUR12.99 on mobile, given app-store fees) to keep using Facebook/Instagram without ads. The pause on ads for teen users starts on November 6. We think the tactic by META essentially helps keep the company in good standing with regulations in Europe and will push users to consent to behavioral ads, sustaining its massive installation of MAUs/DAUs. The alternative of paying a big monthly premium or having no access to the social media apps seem like very unappealing and unlikely options for most consumers. Despite the changes that META needs to adapt to in Europe, we don’t believe these measures will trickle into most other regions (including the U.S.) across the globe.