Meta Platforms says that it is adding paid verifications to Facebook and Instagram. In the words of its CEO, Mark Zuckerberg, the company claims it is because of “increasing authenticity and security across our services.” But let’s be real: it’s all about an extra source of revenue.
What exactly is the “Meta Verified” service? Companies can verify their identity on the site for either $11.99 or $14.99. The more expensive subscription covers mobile devices from both Apple and Google. Facebook and Instagram employees will verify business entities based on government-issued ID cards. The service launched in Australia and New Zealand this week and will roll out to other countries over time.
Meta Verified Facebook and Instagram Accounts
Zuckerberg introduces paid accounts, and Meta Platform (META.US) explains that verified accounts will receive enhanced services. This “better” is to rely primarily on the increased reach of posts and ads. More people will see posts from verified entities in “user feeds” on Facebook and Instagram. As you know, the reach of content on social networks is crucial for companies investing in advertising through this channel. Companies will likely have to pay $11.99 or $14.99 to be visible to their potential customers. If they do, their range will be better.
But better reach on Facebook and Instagram is one of many benefits Zuckerberg promises. Meta-verified account administrators are also to receive VIP support, which means that real people and not bots will help them.
Zuckerberg Introduces Paid Accounts As Others Did It Before
The Meta Platform and paid verifications are not new. After being acquired by Elon Musk at the end of last year, Twitter began experimenting with paid accounts. In exchange for a fee, their administrators were to get a Twitter Authority Verification Badge. However, little remains of the original idea. Twitter is selling this badge to anyone who wants to buy it. Knowing what happened with Twitter, Zuckerberg swears this will not happen with the Meta Platform. It says that their verification will be real and reliable because it will be based on official documents from the government.
Paid Verification: A New Source of Social Networking Income
Snapchat (SNAP.US) has also had a paid subscription option for some time now. So we can talk about a trend. Social networking sites have built a new way to make money through business plans. And advertising-income is decreasing, as the poor GAFA results for Q4 2022 make clear. Because of this, diversification is important for tech companies that own social networking sites. Justifying these ideas with “concern for the authenticity and safety” of users is plain bullshit.
Unfunny Fact: Social Platforms Make Money By Trading Our Data
Let’s remember that social networking sites still make almost all of their money from ads because they have much negotiating power and can get much private information about their users. Big technology companies such as Google, Meta Platforms, or Amazon sell their users’ data to advertisers, thanks to which advertisers can more precisely target their content to a precisely defined target group.
Who knows? This new source may be as important as the current advertising revenue stream.
