Hey there, digital marketing enthusiasts! I have some important news to share that will affect all of us who target any country or territory within the European Union. Due to recent legislation, we’re now required to provide both beneficiary and payer information for our Meta ads.
Confused? Don’t worry, I’m here to explain what this all means.
Decoding the New EU Regulation
The EU Digital Services Act (DSA) is the new sheriff in town. This regulation mandates that Meta must be privy to information on the beneficiary and payer of ads that target anyone residing within the European Union.
Who exactly are the beneficiary and payer, you ask? Well, the beneficiary is the brand, person, or candidate that directly benefits from the ad, while the payer is the entity footing the bill. It might seem like stating the obvious, but trust me, it can get a bit tricky.
For instance, the payer isn’t necessarily the source of the credit card on file for the ad account. An ad agency running the ad isn’t the payer, but rather the entity that paid the agency for that ad. In many cases, the beneficiary and payer will be the same entity – like if you’re a small business advertising your product.
However, things get a bit complex when a parent company pays for ads (the payer) promoting a subsidiary (the beneficiary).
Now, if you’re wondering about the list of countries and territories within the EU, it’s quite extensive. Meta’s official announcement lists them all, so do check it out.
All countries requiring Beneficiary and Payer information in Meta Ads
- Åland Islands
- Büsingen am Hochrhein
- Campione d’Italia and Italian waters of Lake Lugano
- Canary Islands
- Czech Republic
- French Guiana
- Melilla and Ceuta
- Mount Athos
- Saint Martin (France)
Please remember, I’m a digital marketing expert, not a lawyer. This isn’t legal advice. If you have any doubts about these new regulations, I’d recommend consulting a legal professional.
How to comply with Beneficiary and Payer requirements in your Meta Ad setup
The moment you target a country or territory from the EU (or go for a worldwide target), you’ll be prompted to provide the beneficiary and payer information.
The drop-down menu should automatically list the verified businesses connected to your business account. But remember, your business needs to be verified to show up here.
If the entity you need to use doesn’t appear in the list, you can enter it manually. If the beneficiary and payer are the same entity, your job here is done. If not, you’ll have to indicate that a different person or organization is paying.
What Happens From June 21 with your Meta Ads?
Starting June 21, you’ll have to provide beneficiary and payer information for any new ads, or when editing or duplicating existing ads that target EU users. If you fail to do this, your ad will not be published. As for active ads targeting the EU, my guess is they will continue running normally unless you try to edit or duplicate them.
Transparency and the Meta Ad Library
In a bid to promote transparency, beneficiary and payer information will become publicly available within the year in the Meta Ad Library. This information will remain accessible for a year after your ad’s final impression. But don’t worry, this information won’t appear directly on the ad or in the feed, and it’s unlikely many users will access the Meta Ad Library unless they have a specific reason.
Will this impact Ad Performance in the European Union?
According to Meta, the addition of beneficiary and payer information won’t impact your ad’s delivery, costs, feature accessibility, or review process. So, this new requirement should simply be an extra step in your ad setup, not a cause for alarm.
How Will Meta Advertisers Respond?
When I first encountered this change, it got me thinking. Could this create an opportunity for advertisers? Well, let me explain my thoughts.
The initial confusion around the new information requirements might cause some apprehension. Some brands might prefer to keep their beneficiary and payer information private, and this requirement could raise legal concerns. For small advertisers encountering this for the first time, the question is: will they take an educated guess and push through the steps, hold off, or decide to target different countries to avoid the extra steps?
I wouldn’t be surprised if we witness a temporary drop in ad spend within the European Union due to these changes. This could potentially lead to less competition and lower costs for advertisers who choose to stick around.
This new requirement is definitely a significant shift in how we manage our Meta ads targeting the European Union. I’d love to know how you plan to address these changes. Will they significantly impact your advertising strategy?
Do share your thoughts and questions in the comments below. As always, let’s navigate these digital marketing waters together!