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How SMBs Can Avoid Apple's Fees and Increase Ad ROI

Apple's commission charges, which impose a fee on in-app purchases including the cost to "boost" posts for greater visibility on platforms like Facebook and Instagram, have significant implications for small business advertisers. Here are a few key impacts, and why it’s more important than ever to have effective creative. 

• Increased Advertising Costs: With Apple taking up to a 30% cut on in-app purchases, small businesses looking to boost their posts will face higher costs if they continue to make these transactions through iOS apps. 

• Budget Reallocation: To avoid these fees, businesses might need to reallocate their budgets, spending less on the actual creative development of content to accommodate the additional costs imposed by Apple's commission. 

• Operational Adjustments: Small businesses may need to adjust their operational procedures for advertising. By moving their ad purchases to web browsers, as suggested by Meta, they can bypass Apple's fees. 

• Strategic Reevaluation: The charges may force small businesses to reevaluate their overall digital advertising strategies. They might consider investing more in proven strategies and improved creative that offer better returns on investment.

• Innovation in Advertising: On a positive note, this challenge could spur innovation, encouraging small businesses to explore new, cost-effective ways of reaching their audience. They might delve into organic growth strategies, content marketing, or other creative advertising solutions that do not incur additional fees.

Small businesses can adopt several strategies to combat the increased costs due to Apple's new commission charges for in-app purchases, including those for advertising on platforms like Facebook and Instagram. Here are some actionable steps they can take:

• Shift to Web-Based Ad Purchases: As Meta suggests, small businesses can avoid Apple's fees by purchasing ads through a web browser instead of through the iOS apps. This requires adjusting the workflow but can significantly reduce costs associated with boosting posts or running ad campaigns.

• Explore Alternative Advertising Platforms: Diversifying advertising efforts across different platforms can help small businesses find more cost-effective ways to reach their audience. Platforms like Google Ads, LinkedIn, Twitter, or Pinterest may offer competitive rates and unique audiences that could provide a better return on investment.

• Collaborate and Cross-Promote: Partnering with other businesses or influencers for cross-promotion can be a cost-effective way to reach a wider audience. Such collaborations can provide mutual benefits without the need for significant ad spending.

• Leverage Organic Social Media Strategies: Investing time and resources in building a strong organic presence on social media can reduce reliance on paid advertising. Engaging content, community building, and leveraging hashtags are ways to increase visibility without incurring additional costs.

• Optimize Ad Spending: Use analytics and performance data to identify the most effective advertising strategies and channels. Focusing spending on high-performing ads and audiences can ensure that every dollar spent contributes to achieving business goals.

Overall, Apple's commission charges represent a challenge for small business advertisers, pushing them to navigate the changing digital advertising landscape carefully to maintain visibility and engagement with their audience while managing costs efficiently.

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