How to offset the new Meta DST fees without increasing budget

From July 1st, 2026, Meta will no longer cover the costs of Digital Services Taxes (DSTs). The location fees apply to video and image-based digital ads that are shown in Austria, France, Italy, Spain, Türkiye and the United Kingdom. Crucially, it does not matter whether the advertiser is based in any of those countries. 

Advertisers can offset Meta’s new DST-driven location fees by improving efficiency rather than increasing spend. This can be achieved primarily through tighter audience segmentation, creative optimisation and budget reallocation across campaigns. We’ll explore how to reduce waste to absorb the additional cost. 

How to offset Meta DST fees

1. Calculate what your new monthly budget is, after DST has been applied

• In the UK, a 2% DST fee will apply. This is the lowest compared to the other affected regions (see below), but it’s still enough of a chunk to affect your budget planning.  
• To work out your new monthly budget: 
  • Divide your existing budget by 1.02 to find your working budget 
  • Multiply your working budget by 0.02 to calculate your estimated DST 
  • Add your working budget to your estimated DST to balance
  • Example: 
    • £50,000 ¸ 1.02 = £49,019.61 
    • £49,019.61 x 0.02 = £980.39 
    • £49,019.61 + £980.39 = £50,000

2. Reallocate spend away from lowest efficiency campaigns

• Your campaigns might be due some well-needed optimisation. The introduction of the DST gives us an opportunity to tighten things up.
• Simply reallocate funds from your worst-performing campaigns into your best ones. 

3. Consolidate campaigns to improve learning phase efficiency

• If you’re running the same ad objectives under multiple campaigns, now is the time to consolidate them. 
• Using campaign budget optimisation should encourage Meta’s algorithm to scale spend where the results are – but keep an eye on this. 
• Keep campaigns reserved for testing as they are, to ensure control.

4. Increase creative testing volume to improve CTR/CVR

• Whether it’s previously successful creatives (providing they’re still relevant), or iterations of existing assets, scale up the creative you’re feeding into Meta ahead of July.
• Note the top performers to help with consolidation later down the line. 

5. Tighten audience exclusions to reduce wasted Impressions

• Still not got around to excluding your purchasers from the last 90 days? Get to it! Create custom audiences using the Meta Pixel, or even better, upload first-party data to exclude from campaigns, as this will help gain new customers. 

6. Adjust bid strategies

• Test how manual CPCs or Cost Per Result goals affect your performance. Find the balance between budget control and revenue performance in order to scale campaigns efficiently. 

How can I quantify what the DST fees will mean for me?

Simply put, the 2% DST fee in the UK requires either: 

• +2% ad efficiency gain 
• If your CPA is £50, it needs to reduce to £49.02 
• -2% cost reduction elsewhere 
• If your media budget is £50,000, it needs to reduce to £49,019.61 

Which countries are affected?

More from us

Meta’s DST fees are a fixed cost increase, but they do not require higher budgets. Advertisers who focus on efficiency – across media, creative and conversion – can absorb the 2-5% uplift without sacrificing performance. 

At Dig & Dig, we help ambitious brands turn platform changes into competitive advantages. Our Paid Media specialists audit account structure, uncover inefficiencies and implement practical optimisations that protect performance even when costs rise.