I deleted Instagram because of this trend which is showing up for internet-based messengers, and social media platforms are shifting to freemium models instead of relying on ad revenue.
Telegram and Snapchat launched their freemium plans in the past few months.
This also feels like a healthy trend because ad frequency has been multiplying on platforms that don’t charge anything directly from users.
I deleted Instagram years back simply because the number of sponsored posts was more significant than the organic creators I followed.
I plan to figure out strategies to do something similar with WhatsApp, too, because I have noticed how the number of messages from brands and advertisers is increasing daily.
User preferences are changing as internet adoption, and digitalisation is increasing.
In the first phase of internet adoption, enterprises ran based on data on the internet, which is why the most popular and most used internet products are free.
These enterprises earned a majority chunk of their revenue via ads.
As the internet user base has grown, the revenue split between earnings from product features vs earnings from ads will shift.
Product revenue will increase in the coming years.
In the initial phase, free ad-based models made sense – they hooked us to popular products.
Of course, ad-based and freemium models would continue to co-exist. Only the volumes would change.
What do you think?