Instagram Stories will now contain ads. The popular social network owned by Facebook will incorporate advertisements from companies like Nike, General Motors, Netflix and Coca-Cola starting today.
Instagram Stories, which is relatively new, has rapidly gained popularity in the last months reaching around 150 million users.
Only a month ago the feature had 100 million users, translating into a 50% grow in just weeks.
Ads will be full-screen, and they will appear between stories the moment users flick through the app.
The companies that will display publicity will keep track of the users’ reactions as they check out their friends’ stories, as well as the changes this might bring to the frequency people open the app. The ads will pop up, and they will have the option to skip them, ignore them or tap on them.
How will the ads work?
Ads in stories will come in two forms. They will be displayed through photos and videos, and they will be tagged as Sponsored. Even though videos are expected to be the main format to advertise, Instagram is giving advertisers both possibilities.
Many people around the world already use Instagram stories to market their own goods as in different types of free online stores. Now, major companies will use this high-reach tool to offer their products to a significant number of people.
The social media company is also launching new tools for all those businesses that will be advertising. With these tools, companies will be able to see the impressions, response and reach of their ads and how the user receives them, or perhaps what type of products they like. This way, companies will track the users’ preferences to display more efficient publicity.
Instagram could become Facebook’s goose of golden eggs
Instagram is trying to boost revenues making it an important part of Facebook’s ad income in 2017. Noah Mallin, head of social for ad agency MEC Wavemaker said that Instagram could become as important for Facebook as Youtube is for Google.
According to the forecasting firm eMarketer, Instagram’s advertising business could produce revenues for $3.64 billion this year. It seems accurate since Instagram reported engagement with stories had been high from the almost 300 million users.
The company said they would continue to work on the Story feature and on the addition of new tools. Its popularity is undeniable as one in five stories receives a direct message, according to Instagram.
Thirty percent of the most viewed stories are, in fact, made by businesses. According to a recent study, three-quarters of users follow at least one business on the app.
