Facebook-owned Instagram has got a lot of user engagement, and with the users comes the opportunity to increase ad revenue.
Instagram Stories Advertisement
Instagram Stories (inspired/copy of Snapchat) has launched back in August last year. It pretty much legit that with the latest update, the photo sharing app will bring ads in between Stories. According to the company, 150 million people a day are using this feature, pretty much same as Snapchat.
Noah Mallin, Head of Social for North America, MEC (ad agency) said:
The photo sharing app could end up being as strong a revenue component for Facebook as YouTube has been for Google.
The new full-screen ads will be shown intermittently as users swipe through photos and videos on Instagram Stories. Well, the company has already started testing with major advertisers such as General Motors Co, Nike Inc, and Airbnb.
ALSO READ: Instagram Lets You Save Photos Privately In The App, Beware Of Stalkers!
According to eMarketer, 74% of US companies plan to use the photo-sharing app this year, which is a huge growth when compared with 53% of the last year. Addition to this, in order to stay transparent, the videos will be marked Sponsored.
James Quarles, VP of Instagram Business said:
Adverts are designed for “reach” rather than immediately to drive sales and will not have links to websites.
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