Just over a year ago, Instagram opened its new features about photo feed to the advertisers large and small. Now another feature is coming, more ads are coming to the free app, and this time Instagram adds advertising to Instagram Stories. Instagram owned by the Facebook, the company said 150 million accounts a day were now using Instagram Stories, and which made waves for its mimicry Snapchat Stories. That is to say half of Instagram’s 300 million users a day.
The Social media company will become a more important performer or player in maintaining Facebook’s development in advertising revenue in 2017. Facebook executives said that they may very soon meet the limit on the amount of ads they can set in front of users, which had been one of the main key factors driving ad revenue growth or development.
The Media buyers are optimistic about the Instagram’s ability to keep up Facebook’s place, and the second only to alphabet Inc’s Google, in the digital marketplace. Noah Mallin, the head of the social for the North America said at ad agency MEC, “Intsagram could end up being as strong a revenue component for the Facebook as the YouTube has been for the Google”.
In Instagram Stories, the users and businesses can post a string of the photos and also videos that disappear after 24 hours. The service launched in the month of August and at presently has 150 million daily active users, said to Jim Squires, who is the director of the market operations for the Instagram.
The new service ad product will show full-Screen ads from time to time as users swipe through photos and also videos on the Instagram Stories. The Company is checking or testing it with major advertisers including Capital One General Motors, Nike, Buick, and Airbnb, which is using ad to promote its product Trips on Airbnb.
The ad style is as similar as to the format Snapchat rolled out in June 2016, which lets the advertising companies place their ads in between user content in a purpose to create a more organic viewing experience.
Time Warner Inc’s Turner Sports will check ads for cable network TNT’s airing of the next coming month’s National Basketball Association AII-Star Game in the New Orleans.
Advertising companies normally test these new advertising products with a select team or group of advertisers to work out any kinds of kinks before a wide roll out.
As according to eMarketer, 74% of the United States companies plan to use Instagram this year, up from 53% who used it for the purpose of the marketing 2016. This point or level of use would allow Instagram to surpass Twitter.
Ian Schafer said, “It’s definitely gained importance”, Ian Schafer who is the founder and Chairman of the ad agency Deep Focus, he further said that he plans to spend more money with Instagram.
Facebook admit that the past few months have been done a variety of errors in how it has measured performance for the brands that advertise on the platform. The purchasers do not expect that to hurt Instagram’s effort.
Victor Pineiro, senior vice president social media for the digital agency the big Spaceship, said that, “They just have such a monopoly when it comes to attention that it’s difficult not to have to go that route”.