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Tag: market demographics

  • Meta considers paid subscription in EU for users to bypass targeted ads | CNN Business

    Meta considers paid subscription in EU for users to bypass targeted ads | CNN Business

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    CNN
     — 

    Instagram and Facebook users in the European Union may soon be able to opt out of targeted ads if they pay for a monthly subscription.

    A source familiar with the matter told CNN that Meta is evaluating a range of options to comply with multiple European regulations aimed at curbing US technology companies’ use of personalized ads. Over the last year, the EU has tightened regulations and will require big tech companies to ask users for their consent around such advertising.

    In July, a court ruled tech companies could use subscription models as a way of offering such consent, including asking users if they want to access Facebook and Instagram without advertising, for a fee.

    Under the EU’s General Data Protection Regulation (GDPR), companies may collect and use the personal data of EU citizens so long as the usage falls into certain disclosed categories. Meta has previously argued that its data collection for advertising is needed for fulfilling the “contracts” between the platform and end users to provide service. But privacy advocates and regulators have said that justification doesn’t support the use of personal data for advertising.

    CNN’s source said Meta remains in close discussions with its lead regulator in Europe, the Irish Data Protection Commission, about a compliance solution. The plans, if implemented, would not apply to users outside of Europe.

    The Wall Street Journal recently reported Meta aims to charge about $14 a month to users who want to bypass targeted ads on Instagram on their phones and $17 to access both Facebook and Instagram without ads, to comply with EU regulations.

    A spokesperson for Meta declined to comment on the possibility of rolling out a subscription plan but echoed that it is looking at all options.

    “Meta believes in the value of free services which are supported by personalized ads,” the company said in a statement. “However, we continue to explore options to ensure we comply with evolving regulatory requirements. We have nothing further to share at this time.”

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  • Uber launches advertising unit to let marketers target ads based on where you go | CNN Business

    Uber launches advertising unit to let marketers target ads based on where you go | CNN Business

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    CNN Business
     — 

    Uber is launching an in-house advertising division and rolling out its own form of targeted digital ads as it seeks to develop new revenue sources.

    The ridehailing giant announced the launch of its “enterprise-wide” advertising unit on Wednesday, saying it will be helmed by Amazon advertising veteran Mark Grether.

    Uber

    (UBER)
    at the same time unveiled its new in-app “Journey Ads” service, which lets marketers place ads within the Uber

    (UBER)
    app to reach customers at each step on their trips. This means the customers will be served ads when they check to see how far away their driver is, or follow the route of their journey via the app.

    In a statement, Grether said Uber has a global audience of customers who “tell us where they want to go and what they want to get.”

    “While these consumers are making purchase decisions and waiting for their destination or delivery we can engage them with messages from brands that are relevant to their purchase journeys,” Grether added.

    Tech giants like Meta and Google have long used the data they collect from users to target ads, despite some digital privacy advocates denouncing this behavior.

    Users can opt out of targeted ads on the Uber app at any time, Grether told the Wall Street Journal.

    The announcement comes after Lyft launched its own advertising business in August.

    The news also comes in the shadow of the Biden administration proposing a new labor rule last week that could classify millions of gig workers as employees — serving a potential challenge to the low-cost models that have powered the growth of gig economy companies like Uber and Lyft.

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