Instagram to Increase Ads in App to Combat Fall in Revenue

Meta is facing a decline in its quarterly revenue for the first time ever in the second quarter of this year and company aims to combat the decline in revenue by increasing the number of ads on platforms like Instagram and Messenger. According to the details, the social media giant is going to introduce ads into more areas of Instagram, namely the Explore Feed and the feed of posts from a user’s profile.

Instagram Ads, Instagram — Instagram to Increase Ads in App to Combat Fall in Revenue

Instagram will allow brands to place ads in the Explore Feed, but ads in the profile are still in their initial testing phase. However, the company will also offer some creators the chance to earn a cut of revenue from ads that will be displayed on the creator’s Profile Feeds.

Meta has announced a number of updates for its advertising products and some of them will impact Instagram. For starters, the company will try out augmented reality ads in both Feed and Stories. According to Meta, these ads will allow brands to let people test virtual furniture in their home or get a closer look at a car.

Additionally, the company is also experimenting with new ad formats in Facebook and Instagram Reels, including a post-loop format that shows skippable ads lasting between four and 10 seconds after the reel finishes. Meanwhile, the company is also testing carousel ads, which users may start to see at the bottom of Facebook Reels starting today.

Instagram has confirmed that number of ads shown inside its app will be different for every users, but they will appear in places where they weren’t present before. “The number of ads across the platform varies based on how people use Instagram,” a spokesperson for Instagram told Engadget. “We closely monitor people’s sentiment — both for ads and overall commerciality.”

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