Marketing 2 min read

Facebook Advertisers Are Shifting Ad Spending to Instagram Stories

Image courtesy of Shutterstuck

Image courtesy of Shutterstuck

Over the last year, ad buyers have been making a gradual shift from Feeds to Stories – specifically, Instagram Stories.

According to Facebook‘s CEO, Mark Zuckerberg, over 500 million people used the Stories across its platforms in the first quarter of 2019. These include Facebook, Instagram, and Messenger. COO Sheryl Sandberg also revealed that the feature got 3 million ad buyers within the said period.

Although Facebook did not share any usage data during its 2019 second-quarter earnings call on July 24th, Chief Financial Officer of the company, David Wehner hinted at more adoption.

According to the CFO:

“In Q2, the average price per ad decreased 4 percent, and the number of ad impressions served across our services increased 33 percent. Similar to last quarter, impression growth was primarily driven by ads on Instagram Stories, Instagram Feed, and Facebook News Feed. The year-over-year decline in average price per ad reflects an ongoing mix shift toward Stories ads and geographies that monetize at [a] lower rate.”

Also, advertisers admit to spending more on Stories in 2019. In a statement to Digiday, Brandon Doyle, founder of Wallaroo Media, said that about 40 percent of his company’s ad budget is going towards Stories.

This raises a question: why are advertisers shifting to Instagram Stories?

Why Ad Spend is Moving to Instagram Stories

Over the last year, Facebook executives have been suggesting the importance of Stories to advertisers. Considering the company’s calls with investors in the third quarter of 2018, where it reportedly used the word “Stories” 72 times. The same can be said for the fourth quarter of 2018 and the first quarter of 2019 calls.

While the July 24th call only had 23 “stories” mention, the company had already planted the seed.

The worthwhile return-on-investment for advertisers was just the fertilizer that helped them grow. Depending on your target market, Instagram Stories can be 20 percent cheaper than Feed ads.

Another reason for the increasing ad spend on Instagram Stories is the recent addition of interactive elements.

Features such as adding polling to Instagram Stories have inspired more adoption by advertisers. A digital agency, The Foxwells, also admitted to Digiday that the best performing ads for direct responses are five-second boomerang videos which include a poll.

With that said, some ad buyers said that they hope to see more of these interactive features. They also expressed interest in seeing call-to-action elements such as lead ads.

Read More: Facebook Messenger Kids’ Bug Lets Children Chat With Strangers

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Sumbo Bello

Sumbo Bello is a creative writer who enjoys creating data-driven content for news sites. In his spare time, he plays basketball and listens to Coldplay.

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