What Will Advertising in Instagram Stories Mean for Snapchat?

By Tinuiti Team

In the coming weeks, Instagram users should expect to see video ads between Stories. These ads will be limited to 15 seconds each. Owned by Facebook, this social media platform is in the process of testing these ads with a limited number of brands. They include Nike, Netflix, and Maybelline New York.

This social media advertising news adds to the excitement of Instagram hitting 600 million users recently. Approximately 100 million of these users signed up within the last six months of 2016. And guess what drove this substantial growth. If you guessed Instagram Stories, you guessed right.

This feature launched in the middle of 2016. It averages over 150 million users a day, which is up 50 percent in the past three or so months.

The Advertising Benefits

The new video ads could turn out to be a big win for Instagram. Besides, its social media advertising revenue is in a good place now. For example, eMarketer, a market research company, estimated the platform’s 2016 ad revenue at $1.85 billion last November.

We’re bound to see a bigger number once Instagram completely monetizes stories like it monetizes its main feed. This is in addition to the likelihood of an increased user base.

What Does This Competition Mean for Snapchat?

This social media advertising update could pose a threat to Snapchat’s ad revenue. Besides, Instagram has already received a lot of positive feedback from advertisers because of its large user base and relationship to Facebook data. This positive perception is likely to expand.

For example, these video ads will be able to utilize Facebook’s targeting. Two strengths of Facebook are deep-linking and autofill ads (or lead ads), which will likely be incorporated into Stories ads.

On the other hand, Snapchat has been following in Facebook’s footsteps regarding these two features. So, it’s a close call in determining who will come out on top this year. But it will likely be Facebook thanks to its larger user base.

What Does All of This Mean for Marketers?

The similarities between Snapchat and Instagram make it more of a challenge to determine which has the best social media advertising benefits. But it’s important to use these platforms strategically while keeping the best interests of you and your target population in mind. This is a good chance to experiment with the features and find out which works best for your needs.

Want more social media advertising information? Check out our case study detailing how we helped Revel Systems generate leads with Facebook Lead Ads.

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