The Future of Instagram – Advertising Streams

By The Socialite Media 3 months agoNo Comments
the future of IG

Trend 2 # Instagram is Increasing it’s Advertising Streams

When Facebook bought Instagram we all saw this one coming. The increase in advertising and ad revenue for the brand. Not only has the frequency of advertising changed but also the methods on which you can advertise. Read on for trend #2 on the future of IG.

The only thing we are hoping is that they do not go over the top with ads. I personally stay off Facebook now because it’s so cluttered with sponosred posts I no longer want to use the platform. Seriously I feel like the ratio is 1 advertisment to every 3 posts.

It has completely ruined my user experience. Consequently I now treat Facebook on a personal level like the plague.

Let’s look at some financials.

Andy Hargreaves, a research analyst with KeyBanc Capital Markets told Recode that he expects Instagram to grow to about 30 percent of Facebook’s ad revenue in two years, as well as nearly 70 percent of the company’s new revenue by 2020:

Hmmmm. Please do not go OTT guys!

Instagram Financial Statistics

In 2015, Instagram was forecasted to bring in $10.87bn in mobile ad revenue. 

In 2017, it was estimated Instagram would reach nearly $4bn in revenue.

By 2019, it’s said Instagram ad revenue could reach over $10bn.

Let’s just hope the platform does not turn into another stream of ads. With an increased pressure for Instagram to now produce such a large percentage of revenue for the company it comes at no surprise that the brand has expanded it’s advertising model.

Ads are now available on Instagram Stories

The future of IG in 2019

Mark Rabkin, vice president of ads and business platform at Facebook said that “people are posting over a billion stories a day, and advertisers need to embrace the format, quick.”

Now that Stories have their own ad options, businesses have a new opportunity to raise awareness for their products and services.

Instagram Stories is another way for you to tap into people’s passions and inspire them to take action. In fact, of the 500 million accounts using Instagram Stories,1 one-third of the most viewed stories come from businesses, and one in five stories gets a direct message from its viewers.2

With a direct message rate of one in five, this space brings a great ROI.

To increase your Instagram stories conversion ensure that you are making your artwork as professional as possible.

Remember that most users watch Instagram stories with sound! That is another facet to consider to help set your ad apart.

The future of IG - Increased advertising options

To ensure the success of your campaign make sure that your ad has a strong direction and call to action.

You can see here Milly allows the user to shop the looks on their website seamlessly in the Instagram app.

How to Test Instagram Story Advertising

Wondering how to test Instagram story advertising for your brand? Try a range of visual communication messages to see what best resonates with your audience.

From casual unedited stories to video and influencer marketing.

Measure the success of each campaign and see the best way your target audience likes to be communicated with. Casual, authentic stories: Show your human side by avoiding too many filters or highly-produced images.

Users with over 10,000 followers can put a call to action link in their stories directing traffic to their desired location for free.

To grow your account to get this feature you can purchase our Instagram growth package here. 

Video Ads are now on Instagram

If you have been working with video in your Instagram profile you may find that it performs much better than static posts! I know it has for me. With the introduction of video advertising on Instagram, it allows you to tell your story more dramatically than with a static photograph.

Remember, studies predict that video will make up about 81% of internet traffic by 2021. There’s still time to get ahead of the game.

Ads now on Instagram Augumented Reality

Instagram is experimenting with new forms like augmented reality ads.

A good example of a recent campaign would be an ad that let’s you virtually try on makeup or see how a couch would look in your living room using your phone’s camera right in the Instagram app.

Here is a selfie my bestie took using Kylie Jenners lipstick augmented reality campaign on Instagram. (Not the best photo it was nighttime).

The only downside was there was no call to action to buy. I think if there was we both would have purchased this shade in a heart beat.

I’m sure we will see the links integrate with augmented reality very soon since, we are seeing the development of increased E Commerce Capabilities.

Instagram has Increasing its E-Commerce Capabilities.

The future of IG: Instagram is Increasing their E-Commerce Capabilities

Instagram has implemented the ability to shop and purchase seamlessly in the app. Much like buyable pins on Pinterest.

To purchase products in the Instagram app there are two e commerce options: 1. In your feed or 2. In an Instagram story.

In the past you had to be a Shopify or Bigcartel seller in order to simply apply for the Instagram shopping feature.

That was no guarantee that you would even get approved either.

How do you shop a post now on Instagram?

When someone taps a product tag on your post or a product sticker in your story, they’ll be taken to a product description page where they will see:

  • An image of the product from your post
  • A description of the product
  • How much the product costs
  • A link that takes them directly to your website, where they can purchase the product in the app

The move to shopping appears to be seamless because Instagram is doing a great job understanding consumer behavior and ensuring its platform is developed in a way that doesn’t disrupt the overall customer experience.

This personally resulted in me purchasing a Fab Fit Fun box last month.

Here is an example of what a shopping story look like on Instagram:

Pro tip: While the shoppable posts feature is fantastic – be careful not to over-use it. Remember what happened to the Facebook feeds. Way too many ads!

What does all of these new advertising streams mean for brands & Influencers?

Decreased in-feed Instagram organic reach, but increased intent-to-purchase

There is the possibility that Instagram will implement similar methods like Facebook where they decreased organic reach and brands needed to implement an advertising strategy to gain the same reach.

While Facebook at the time claimed that the algorthim change was for user benefit and not the beneift of revenue for the brand organic page reach on Facebook has plummeted in recent years, forcing marketers to increase paid Facebook posts and move organic-only content to Instagram.

It is time to get a seamless digital marketing integration strategy.

The only way to combat changes on social media is to get serious about building your brand. This means moving users to your chosen platform. This could be a course, a blog or a website. Why?

You need to implement building your data base. It is your single most critical marketing tool for your brand. You can build your data base with opt ins, lead forms and courses. You can see what type of software we recommend for this here.

Now, you can also implement retargeting methods now with Google Ad sense, so that when you are implementing your advertising strategy you are targeting warm leads, not cold ones!

Stay true to your brand and don’t over promote.

With all the new noise coming to Instagram through multiple advertising channels, remember to keep it real. I couldn’t tell you how many fake gurus I see advertised on Facebook currently.

Keep your content real, fresh, honest and valuable for the user. If your content is not providing value you will be sure to get an unfollow in a cluttered noisy digital environment.

Where do you see the future of IG going in 2019? Are there trends we have missed? I would love to hear them below!

Check out our latest articles here:

What are your posts worth? Check your value with our Instagram Influencer calculator.

Check out our free analytics tool for Instagram. Gain better insights into your audience and competitors.

How to find the best time to post on Instagram.

Ready to start growing your Social Media Platforms? Check out our Instagram growth packages here.

When Facebook bought Instagram we all saw this one coming. The increase in advertising and ad revenue for the brand. Not only has the frequency of advertising changed but also the methods on which you can advertise.
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