Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Instagram Puts Ads on Stories as Users Reach 150 Million

Instagram will start to slip in ephemeral ads between stories from friends, turning the popular feature into a moneymaker for Facebook.
Instagram and other apps | Source: Flickr
By
  • Bloomberg

SAN FRANCISCO, United States — Instagram will start to introduce advertising to its stories feature as it becomes more popular, stepping up competition with Snap Inc.

Facebook Inc.’s Instagram said it now has 150 million daily users on the stories feature of its photo-sharing site that was inspired by a popular Snapchat product, which broadcasts short videos that disappear after they are viewed, or after 24 hours. Instagram’s number for stories matches the statistic Snapchat gives for its total daily global audience.

Instagram will start to slip in ephemeral ads between stories from friends, turning the popular feature into a moneymaker for Facebook. While Snapchat also advertises between stories, it is still building up the infrastructure that Instagram has to measure and track ads and link them to demographic data, which can attract more marketers.

“We’re pairing this new format with a powerful advertising capability, so they can target the people that matter to them,” said James Quarles, vice president of Instagram business. “That is what is differentiating and sets us apart.”

ADVERTISEMENT

Instagram will start the ad test in a few weeks with 30 clients, including Nike, Airbnb and Capital One. Quarles pitched the feature to advertisers last week at the Consumer Electronics Show in Las Vegas.

Advertisers “love vertical video and they love sound on,” Quarles said, noting that 70 percent of stories watchers do so with sound. “That’s where stories, from a format standpoint, is so interesting to them.”

Snapchat was a pioneer in advocating for vertical video, which takes up the entire screen on a mobile phone, as opposed to horizontal video designed first for television screens — the primary format in Facebook’s news feed. Instagram’s rival, owned by Snap Inc., is gearing up for an initial public offering, planned for as soon as March this year.

By Sarah Frier; Jillian Ward, Andrew Pollack and Reed Stevenson.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Technology
Analysis and advice on how technology is disrupting fashion and creating new opportunities.

Why Luxury Is Warming Up to Lab-Grown Diamonds

Brands including LVMH’s Fred, TAG Heuer and Prada, whose lab-grown diamond supplier Snow speaks for the first time, have all unveiled products with man-made stones as they look to technology for new creative possibilities.


The New Backlash Against Social Media, Explained

Social networks are being blamed for the worrying decline in young people’s mental health. Brands may not think about the matter much, but they’re part of the content stream that keeps them hooked.


How Coach Used Data to Make Its Tabby Bag a Hit

After the bag initially proved popular with Gen-Z consumers, the brand used a mix of hard numbers and qualitative data – including “shopalongs” with young customers – to make the most of its accessory’s viral moment.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024