Prepare to see more advertising types on Instagram as parent company Meta tests out new formats.
Prepare for more advertisements on Instagram as parent company Meta Platforms Inc. tests out new formats amid troubling times for the online-advertising industry.
As it stands, Instagram users can visit someone’s profile, click on a post by that person, and scroll down to see full-size versions of all of that person’s posts. With the new ad format, people might see ads in between that user-generated content. Meta specifically faces some growing pains amid the rise of Reels. While Meta has emphasized this content format to contend with competitive challenges from TikTok, Meta executives cautioned on their last earnings call that Reels carry a lower monetization rate than more established content types, though they were upbeat that they would ultimately see financial payoff.
Representatives from Meta said that the company isn’t disclosing the portion of revenue that creators will get from profile-feed ads but that the company expects earnings from them “will be supplemental and not a significant source of income.”
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