Just last year, ML reported Instagram to see four times the rate of ad spent growth than Facebook. However, this year, the numbers appear to be leveling out – according to Kenshoo’s quarterly trends report for the second quarter of 2019.
Interestingly, the advertiser’s share of spend on Instagram’s Story ads doubled annually from 9% to 18% in the second quarter of this year. In fact, Kenshoo reports that the Story Ads grew 186% in spending compared to last year. However, its ad spending through News Feed slowed at a rate of 21% lower than Facebook’s.
Here, it’s worth noting whether the ad growth of Instagram’s Story feature is a result of the ad unit’s performance or Facebook’s ‘push’ to get more advertisers on its platform.
According to Jessica Budde, a digital marketer at Cypress North, the automatic placements is a major contributor to the overall growth of ads feature. This also allows Facebook to learn more about their audiences and deliver better results. Budde also claims that her agency has noticed Facebook pushing Story ads even when the advertiser has deselected it as a placement option.
Another expert of the industry, Akvile DeFazio of Akvertise says that the Stories feature is getting a lot of visibility that ultimately increases its demand.
Instagram Stories have been part of the package for more than two years. However, until recently, the feature has seen rapid growth. If you are also a marketer working on Instagram, do check out the feature and ways to create ad campaigns customized to your brand’s format.
Read next: Spam Accounts Continue to be a Problem for Instagram
Interestingly, the advertiser’s share of spend on Instagram’s Story ads doubled annually from 9% to 18% in the second quarter of this year. In fact, Kenshoo reports that the Story Ads grew 186% in spending compared to last year. However, its ad spending through News Feed slowed at a rate of 21% lower than Facebook’s.
Here, it’s worth noting whether the ad growth of Instagram’s Story feature is a result of the ad unit’s performance or Facebook’s ‘push’ to get more advertisers on its platform.
"Instagram revenue is just a fraction of what Facebook generates, but its strategic importance to Facebook’s wider portfolio of apps is an important key to remaining a dominant market leader. It is a unique social publisher that fits into consumers’ lives as a much different component than its parent company’s flagship app. Instagram continues to add more innovative features, and because it is primarily an image & video channel, can offer advertisers a fantastic complement to Facebook—especially for visual-heavy brands in the travel, retail, entertainment, health & beauty, and fashion industries.", explained Kenshoo in its report.
According to Jessica Budde, a digital marketer at Cypress North, the automatic placements is a major contributor to the overall growth of ads feature. This also allows Facebook to learn more about their audiences and deliver better results. Budde also claims that her agency has noticed Facebook pushing Story ads even when the advertiser has deselected it as a placement option.
Another expert of the industry, Akvile DeFazio of Akvertise says that the Stories feature is getting a lot of visibility that ultimately increases its demand.
Instagram Stories have been part of the package for more than two years. However, until recently, the feature has seen rapid growth. If you are also a marketer working on Instagram, do check out the feature and ways to create ad campaigns customized to your brand’s format.
Read next: Spam Accounts Continue to be a Problem for Instagram
