A few years ago, Facebook ran out of space to put new ads in its news feed. I had reached the limit and there were no more places to add new ads that would not break the experience too (more). For the company, which lives off advertising, that was bad news and it had no choice but to create a new environment in which it could put new ads. Facebook then began to experiment with new content and new formats, which in the long run were to be new windows for advertising content.History repeats itself now, years later, with Facebook’s flagship property, Instagram. The social network, the one in fashion in recent years and the great hope for the future of Facebook, has reached its ceiling. You can no longer put in more ad space.Advertisers have been in recent years more and more interested in Instagram and the presence of the social network in the marketing and advertising strategy has not stopped increasing.Instagram has no new windows for advertisingBut at the same time, the situation has been causing that there are no more spaces to take advantage of: as they point out in an analysis in Business Insider , although Instagram still serves two-thirds fewer ads than Facebook is already reaching its saturation point. You are running out of space in your feed to put new ads.
And, although Stories are beginning to have more and more pull among branded content, advertisers have not just crossed from an ad in the feed to one Croatia WhatsApp Number List in Stories, because the latter involve doing new creative work and positioning themselves in a different way. Ultimately, they require more work.All this has led to Facebook already issuing a warning to investors (indicating that they are reaching a limit and that this will imply a slowdown in income growth in the immediate future) but also for prices to rise. Advertising in the feed, since there is more demand but that the windows cannot increase in parallel, it is more and more expensive.A study by Marin Software indicated, in fact, that the prices of the ads in the Instagram feed were already costing more than those of Facebook and that the prices were going to continue to grow in the coming months.
A more careful experience Facebook will have no choice but to find new windows to put advertising, which is complicated. It is not only that right now it does not have new spaces, but it also has to maintain the philosophy of the product. Instagram currently has fewer ads than Facebook and this happens for a reason.As analysts point out, Facebook has tried to maintain a much cleaner browsing experience, seeking not to saturate Instagram with advertising, because its majority audience is much younger (on average) than Facebook’s and these consumers are much less tolerant of ads. . They cannot fill everything with advertising, because if they do they will lose the pull among their market base.If they fill Instagram with ads, they risk losing their pull among younger consumers, and Facebook, as a business, cannot afford to lose those users on Instagram.
After all, he has already lost them on Facebook as a social network.Perhaps the alternative is for Facebook to position itself more as a whole and make its advertising strategy much more permeable, offering its services jointly and generally. Facebook has already tested automated ad placement systems. Brands simply add creativity and signal what audience they want. Facebook automatically places the ad where those consumers are. Thus, it does not depend on space on Facebook or Instagram, because that element has not been marked as a key. The ad will be served wherever it has space.