Instagram is taking its first step to monetize Stories, debuting full-screen skippable ads in its popular new feature.
Starting on Wednesday, Facebook-owned Instagram will test ads in Stories from more than 30 companies globally such as L’Oreal, Buzzfeed, Nike , Capital One, General Motors , Coca Cola and Netflix. And in the coming weeks, Instagram plans to extend the ability to all advertisers. Instagram is also launching new tools to help businesses track the performance of their stories. Businesses with a “business profile” can see the reach, impressions, replies and exits for each individual story within the Business Tools tab. Instagram said the metrics should help brands make content that is more relevant to their audience. As Stories gains momentum — the feature now has 150 million daily users, up from 100 million daily users three months ago — monetization of the tool will become increasingly important to Facebook. Instagram's advertising business could generate about $3.64 billion in advertising sales this year, according to forecasting firm eMarketer
An example of an Instagram Story created by Airbnb. (Courtesy of Instagram)
"Stories has become a mainstream expression tool," said James Quarles, Instagram's VP of business, describing the format as "integrated" because businesses can use many of the same creative tools as consumers, such as "@" mentions, Boomerangs, stickers, links and illustrations. "Businesses are seeing the opportunity of Stories as a new layer of intimacy that is raw and unfiltered. It’s a new way to deepen a relationship between a business and a person."
Ads in Stories can include photos and video clips, and ads are labeled as "Sponsored." While over time, Quarles expects video to be a more important advertising format than photos, Instagram is giving advertisers the flexibility to use both. So far, businesses have used Stories in a range of ways. J. Crew, for example, used the format to promote a pre-sale for sunglasses, and Lowe's has shared home improvement tutorials with the tool. And publishers have used Stories to distribute news, Quarles said. Instagram first launched Stories in August, acknowledging that its feature is modeled after the Snapchat format of the same name.
"What’s really unmatched here is our ability to combine this immersive format with one of the most sophisticated mobile ads businesses from a measurement and targeting perspective," Quarles said.
Instagram said engagement with Stories among the app's 300 million daily users has been high. (Instagram competitor Snapchat reportedly has 150 million daily users.) The company said it plans to prioritize its work on the format and continue introducing new creative tools. One-third of the most-viewed Stories are made by businesses, according to a recent Instagram study, and nearly three-quarters of Instagram users follow a business on the app. One in five Stories on Instagram gets a direct message from a viewer, the company said.
Fashion company Mulberry UK said Instagram Stories has been a powerful way to drive clicks to its site. The company said that its Stories containing links received about five times more clicks to its site and more engagement when compared to the brand's average across social channels. And 70% of stories on the app are watched with the sound on, lending the format to more immersive experiences. Another company investing in Stories, Airbnb, has used the feature to show video clips of users learning how to make miso soup to promote its “Experiences” product, in which local hosts lead tailored trips for customers. Instagram's ad platform gives Airbnb the option, for instance, to target men and women in the U.S. ages 18 and older.
"Immersive storytelling through Instagram Stories engages and invites our community to be part of an adventure," Eric Toda, global head of social marketing and content at Airbnb said in a statement. “By creating and publishing experience-driven stories, we can truly captivate and reach travelers wishing to book aspirational trips on Airbnb."
Instagram said it plans to add more direct response options to Stories in the coming months and incorporate more e-commerce tools down the line. In December, the app reached 600 million monthly users. Instagram first widely launched advertising a little over a year ago.
"The combinations of the impact of the format with the robustness of our ads business is an exciting way to start 2017," Quarles said
No comments:
Post a Comment