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The Brief, Glorious Run Of Ad-Free Instagram Stories Is Now Over
Posted On Jan 11 2017
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Instagram‘s director of product marketing Jim Squires told Fortune that the app will be testing these ad units for two or three weeks before releasing the feature to all 500,000 active advertisers. The company is now testing the product with major advertisers such as GM, Nike, and Airbnb. Now the app as a whole has 600 million monthly and 300 million daily users. Given the effort Facebook has put into building a video empire over the past few years, the new “mid-roll” ad format is a natural way to monetize the 100 million hours per day that are watched on the site. The company announced that Stories now has 150 million daily users. Sponsored Stories would just sit in the library of stories people see and be labeled as ads for people to click. This is all because of the fact that Snapchat doesn’t allow users to watch friends’ Stories sequentially.
How will the ads work? .
Instagram recently added live video to Stories.
Instagram has reached another major milestone. It also introduced tools for businesses to promote posts, for a price, and to analyze followers. Businesses converted to a business profile will be able to see the reach, impressions, replies and exits for each individual story within Business Tools. This way, companies will track the users’ preferences to display more efficient publicity.
This year, Instagram is expected to generate US$3.64 billion in worldwide ad revenue, almost double last year, according to eMarketer. This will represent 12.3% of Facebook’s global ad business.
According to the forecasting firm eMarketer, Instagram’s advertising business could produce revenues for $3.64 billion this year.
Meanwhile, Instagram Stories is actually a good place to spawn ads.
He said that a third of the Stories that were viewed already came from business accounts.
“Facebook wants all that money that is coming from traditional advertising”, said one social agency executive, who is familiar with the ad tests and spoke on condition of anonymity.
