According to a report in the Verge, Facebook is setting up a division devoted to identify and build, “possible paid features” for Facebook, Instagram, and Whatsapp.
Reporting on leaked internal documents, the Verge says Facebook parent Meta has shifted its focus toward app monetization, looking to develop paid features for all of its social media apps. The move comes on the heels of the damage from Apple’s changes to how users can be tracked across its devices, and the effects that had on ad-targeting. The new division is named, New Monetization Experiences, and is expected to be led by Pratiti Raychoudhury, the previous head of research at Facebook.
VP of monetization John Hegeman, who is overseeing the new division, said in an interview with the Verge, that they are not looking at offering users the option to pay to remove ads from services. He went on, “I think we do see opportunities to build new types of products, features, and experiences that people would be willing to pay for and be excited to pay for.”
Until now, Facebook made money almost entirely from advertising on its platforms. While it does offer paid services, it has not prioritized making products specifically to offer as paid services until now. Hegeman minimized the importance of paid features to Meta’s business model, but added, “on the flip side, I think if there are opportunities to both create new value and meaningful revenue lines and also provide some diversification, that’s obviously going to be something that will be appealing.”
He noted however, that long term, Meta hopes to see paid features become an increasingly important part of the company, saying, “On a five-year time horizon I do think it can really move the needle and make a pretty significant difference.”