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Facebook parent Meta is opening up new avenues for advertising on Instagram and Messenger as the company seeks to reverse the decline in revenue that recently pushed the stock price to its lowest level since early 2019.
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At an event for advertisers on Monday, Meta introduced a new way for advertisers to display ads on Instagram’s Explore page, ranking users based on their preferences and routines and the profiles of all public, non-teen Instagram users. Shows the content on the page. As part of a new test of the ad format, select influencers will be able to allow ads to appear on their feeds as a potential source of revenue.
On the Messenger messaging service, Facebook is launching a tool that uses machine learning software to serve ads aimed at the people most likely to make a purchase. maaz sharafi, Meta’s Vice President of Marketing and Growth for Business Messaging. Sharafi said that “the important point here is that we do not use messaging content for ads,” which means that the company will not analyze Messenger messages to determine which ads will be placed.
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The announcements come just three weeks before Meta released its third-quarter earnings report, which is expected to show a second straight period of decline in revenue. The company gets largely all of its sales from mobile ads, a business that has been hit this year by privacy updates to Apple’s own operating system, as well as a flutter economy and increased competition from TikTok. Meta’s share price has declined nearly 60 per cent this year.
As Meta looks to the future, the company is banking on the Metaverse to drive the emergence and growth of virtual reality. Now it’s starting to experiment with how advertisers would exist in that world.
Meta said it is testing augmented reality ads within Instagram’s main Feed and Stories feature, Nicola Mendelssohn, Meta’s vice president of global trade group, said at the advertising event. Most consumers today experience AR when interacting with digital filters that adorn photos and videos they see on social media services like Facebook and Snapchat.
“Through the AR experience, brands can encourage people to actually try and try on that product or interact with influences from their surroundings,” Mendelssohn said.
Another new option for businesses on Instagram is an advertising product called Multiadvertiser Ads that will show users a carousel of related promotions alongside native advertising. Meta did not provide pricing details on any of its new offerings.
One of Facebook’s primary challenges this year has been a heavy investment in its TikTok competitor called Reels, as there isn’t yet an established ad format for short-form, viral videos.
To try to take advantage of the growing popularity of reels, Meta is introducing post-loop ads, a new ad format for creators and companies alike. A creator can run these short video ads of their partners in the middle of their reels. This feature is only available on the core Facebook app.
Additionally, businesses have the option of embedding a carousel of ads at the bottom of the creator’s reel if approved by the creator.
Explanation: This story has been updated to clarify that ads will be issued to all Instagram users.
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