Dive Brief:
- Instagram is adding advertisements and new insights via Instagram Business Tools for its Stories feature, the platform announced in a blog post.
- Ads for Stories will run as immersive full-screen vertical video and static photo units and marketers will be able to use Instagram’s targeting, reach and measurement capabilities.
- Instagram's Snapchat-lookalike Stories launched in August and reaches 150 million daily users. A wide range of brands including Capital One, Buick, Maybelline New York, Nike, Yoox, Netflix and Qantas are currently testing ads in Stories, with a full roll out to all brands expected to happen soon.
Dive Insight:
Snapchat and Instagram are both visually driven social platforms, and while the former has been quickly building its options for marketers, including introducing more brand-friendly options like deep linking, Instagram has taken a more measured approach to monetization.
The decision to bring ads to Instagram Stories underscores its quick success. When Instagram first announced 24-hour videos feature there was some skepticism as it cribs basic functionality and the name directly from a popular Snapchat offering. But, five months in, Instagram Stories has proven to be popular enough to support full ads. The blog post also hinted at new direct response options and additional ad opportunities coming to Stories in “the near future.”
Instagram Stories has also attracted a few publishers who are creating content for the platform but will not share in any ad revenue, according to an article in The Wall Street Journal. Publishers see significant potential in Instagram Stories and are counting on the business model changing at some point.
Launching ads for Stories with an array of measurements will help marketers asses their return on investment. The new Stories insights are available for brands that have converted their Instagram account to a business profile and the metrics provided in Instagram Business Tools include reach, impressions, replies and exits for each story.
