Instagram to roll out full-screen ads in Stories

Instagram users will start to see something new pop up in their Stories: advertisements.

The photo sharing service revealed new tools for businesses to use in Stories, as the popularity of the Snapchat-like feature ramps up. Instagram says in the five months since Stories was launched, more than 150 million users engage with Stories daily.

Businesses seem to benefit from the use of Stories as well, according to Instagram. One-third of the most-viewed Stories on the service come from businesses.

Instagram says it will roll out full-screen ads, testing with more than 30 partners including Capital One, Nike, Netflix and Qantas. An example of the ads features a short clip from Airbnb embedded in between user Stories. Users will see a logo from the company advertising as well as a "Sponsored" label at the bottom. Users can also tap back and forth with the ad as they would Stories.

Airbnb Instagram Story from Instagram for Business on Vimeo.

Instagram says it will also introduce an Insights tool to allow businesses to measure the reach and impressions for their Stories.

The introduction of Ads in Stories is part of a larger push by Instagram —acquired by Facebook in 2012 for $1 billion — to court advertisers. In November, Instagram said it was testing a shopping feature to allow users to buy stuff from businesses directly within the app.

Since its acquisition by Facebook, Instagram has made feature changes to help woo advertisers, including opening up to video and adding more photo options such as portrait or landscape.

This year, Instagram is expected to generate $3.64 billion in worldwide ad revenue, nearly double last year, according to eMarketer. By comparison, its chief rival Snapchat is forecast to rake in $935 million in global revenue

USA TODAY


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