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Home Business

Facebook Inc. announces ads on Instagram Reels

by Chhavideep Singh
June 18, 2021
in Business, Popular, Tech, Trending, World
Reading Time: 2 mins read
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Instagram Reels
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Instagram Reels
Source: SocialPubli.com

As we all know about how popular Instagram has become in the past decade or so, it is now a significant source of everyone’s entertainment. The social media platform from Facebook Inc. has really kept each and every one of us entertained during these unfortunate times of the COVID-19 pandemic and during that time, the social media giant introduced an all-new mode of creating and sharing short-form content called “Reels,” which was basically a clone of Chinese app, TikTok.

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Having said that, Facebook Inc., the parent company of Instagram, has recently announced to introduce advertisements on Reels platform which has been launched globally, according to the company’s official statement on Thursday.

The company said that these ads would come very naturally to Reels, as per its native format. Advertisers will be posting 30 seconds ads on Reels which will then loop and appear while scrolling individual Reels on the platform. The question remains, why?

Why will a company be interested in introducing advertisements on its platform?

The reason is simple and exactly what you’re thinking right now-Money. Yes! Facebook Inc. is launching ads on Instagram Reels because today, it is the fastest new mode of creating and sharing content and there is a massive trend of short-form video content on social media since TikTok arrived in the game. Reels have become the fastest way to reach a brand-new audience on Instagram and thus, the reach that users are getting through Instagram Reels is massive.

Now, Facebook wants to take advantage of this market demand and is aiming to leverage this mode of short-form content to generate a new revenue stream for itself. Facebook Inc. and targeted ads go hand in hand, but ever since Apple’s ad tracking transparency features have launched, Facebook’s advertisement revenues have taken a major hit. It is possible that the social media conglomerate might try to compensate for those losses by generating a new revenue stream altogether.

Instagram has been testing ads on Reels in India, Australia, Brazil and Germany since April this year and now, it has finally launched globally. The company began its testing with top brands like Uber, Netflix, BMW and Louis Vuitton, as mentioned in a report by Money Control.

Furthermore, Justin Osofsky, Chief Operating Officer at Instagram says that Reels has become a great new way for people to discover new content on the platform, and so ads are a natural fit for Reels. He further went on to say that brands and companies of all sizes can take advantage of this new creative format in an environment where users are already getting their share of entertainment.

 

Tags: Facebook Inc.InstagramInstagram Reels
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Chhavideep Singh

Hi! I'm Chhavideep, If you like reading about technology, business and start-ups, you've come to the right place. Catch me: [email protected]

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