Instagram Stories now has as many user as Snapchat as per latest available data. Now having user base around 150 million, it announced the launch of ads mixed in to Instagram stories. A five-second photo and 15-second video ads appear between people’s stories and can be skipped. Instagram will also provide business accounts with analytics on the reach, impressions, replies and exits of their Stories.
Instagram is monetizing this feature just after 5 months after its launch in August, 2016 which may affect its audience growth. The new Story ads will roll out globally on all interfaces, but will first be tested over the next few weeks with a group of 30 partners like Capital One, General Motors, Nike and Netflix. It is estimated that seventy percent of its users follow a business and one-third of the most-watched Stories on Instagram were created by businesses, so the company thinks its partners can make ads that won’t bore people into closing the app. They’ll be able to check analytics on their Stories through the Insights button on their profiles.
Stories ads will be sold on a cost-per-1000-impressions basis with any length of view counting as an impression rather than needing to play for three seconds to be counted as a view just like Facebook videos. As of now there is no option to click or swipe up to open the advertisement but in the future it might be enabled.
Instagram seems this segment of revenue can add up to big total apart from normal revenue they get from in-feed ads in the app.
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