In the second quarter, Meta’s quarterly revenue fell for the first time ever. It’s hoping to get those numbers back up and keep investors happy. One strategy it is using to accomplish this is to try to extract more money from Instagram.
As a result, ads will be pushed into more areas of the app, including the Explore feed and the feed of posts from a user’s profile.
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Advertisements can now be placed in the Explore feed by brands, but ads in the profile feed are still in the testing phase.
The company will also give some creators the opportunity to earn a portion of the revenue generated by ads displayed in their profile feeds.
Other updates to Meta’s advertising products were also announced. Some of these will have an impact on Instagram.
For starters, the company will experiment with augmented reality ads in both the feed and Stories. According to Meta, brands may use these to allow people to test virtual furniture in their homes or get a closer look at a car.
Furthermore, the company is experimenting with new ad formats for Facebook and Instagram Reels. These include a “post-loop” format, which features skippable ads lasting four to ten seconds that play after a reel.
The reel will play again after the ad concludes. The company is also testing image carousel ads, which should begin appearing at the bottom of Facebook Reels today. Furthermore, brands will have access to a free music library for use in Reels ads.
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The number of advertisements you will see will vary depending on your location. You may or may not see more of them, but they will appear in places where they were previously absent.
“The number of ads across the platform varies based on how people use Instagram,” an Instagram spokesperson told Engadget. “We closely monitor people’s sentiment — both for ads and overall commerciality.”
Meta does not appear to be considering the sentiment that some people do not want to see advertisements at all. The company acted quickly against an unofficial, ad-free Instagram client that appeared last week.