We don’t typically count ourselves as investigative journalists here at Empire9, but as tried and true digital marketers, and enthusiastic true crime podcast listeners… We gave it our best shot when a client came to us with an Apple tax problem.
They were boosting organic Instagram posts, on their business’ profile, and when the bill came through, an additional 30% of the ad spend was charged to Apple, and they received a separate tax charge on top…
We had heard about this Apple tax – but as people who primarily operate in Meta Business Manager and other more complex advertising dashboards, the in-app boost was something we hadn’t done for some time. So this tax hadn’t cropped up for us yet.
If you’ve been boosting Instagram or Facebook posts within the apps themselves, you may have come across the same problem when the charges show up. This isn’t just bad luck; it’s a direct result of Apple’s newly infamous 30% commission, which now extends its greedy grasp to in-app advertising.
How Does Apple’s Tax Work?
When you use the Facebook or Instagram app on your iPhone or iPad to create or manage ads, Apple swoops in and takes a hefty 30% cut of your ad spend. Yes, you read that right. For every dollar you shell out, an extra $0.30 goes to Apple.
Thankfully, we dug about for a fix:
Outsmarting the Apple Tax
While you can’t completely dodge Apple’s tax, there are a couple of clever workarounds:
- Browser Bypass:
- Desktop or Mobile Safari: Access Facebook or Instagram through a web browser on your iPhone or iPad. This way, you’re bypassing the App Store and avoiding Apple’s greedy commission. Or jump on your desktop computer!
- Meta Business Suite:
- Boost Post: Use the “Boost Post” feature in Meta Business Suite to promote your posts without triggering Apple’s tax. This is our preferred method, and a useful tool to get acquainted with if you haven’t already.
Why Should You Care?
By understanding and implementing these strategies, you can:
- Maximise Your Ad Budget: Every dollar counts, especially when you’re battling for attention in a crowded digital landscape.
- Supercharge Your ROI: By avoiding unnecessary fees, you can allocate more funds to effective advertising campaigns.
- Stay Ahead of the Game: In today’s fast-paced digital world, efficient advertising is the key to business growth.
And low-key, Apple doesn’t need any more of your money… Have you seen what a new iPhone costs these days?!
Conclusion
While Apple’s 30% commission is a significant hurdle for advertisers, it’s not an insurmountable one. Our main gripe is that this tax mainly affects small businesses and owner-operators who don’t have marketing experts at their disposal to discover a workaround. If this blog helps just one of those people – then we’re delighted. Make sure you share this blog with the small business owners in your life!
By being aware of the sneaky tax and taking proactive steps, you can optimise your ad spending and achieve better results without losing a third of your budget to the big guys.
For more information on Apple’s App Store fees and their impact on advertising, check out these resources:
- The Verge: https://appleinsider.com/articles/23/01/08/the-cost-of-doing-business-apples-app-store-fees-explained
- The New York Times: https://www.nytimes.com/2021/05/26/opinion/apple-app-store-fortnite-lawsuit.html
- Facebook: https://www.facebook.com/business/news/new-ways-for-small-business-to-boost-and-avoid-apple-service-charges
You’ll be pleased to know we pointed our client in the right direction to avoid these charges in the future! Helping our community with digital domination is what we are all about. If you want to get in touch for a chat about how Empire9 can jumpstart your digital marketing – then get in touch!
