Meta is introducing two new tools on Instagram designed to open up additional avenues for advertising as the company grapples with weak advertising demand. The social network announced that it is beginning to test ads in search results to reach people who are actively searching for businesses, products, and content. The ads will appear in the feed that people can scroll through when they tap on a post from the search results.
After the initial testing phase, Meta plans to launch ads in search results globally in the coming months. The release is likely to be an unwanted addition to the app from a consumer point of view, as it brings ads to another part of the social network.
Once ad placement is widely rolled out, users around the world will start seeing ads related to their searches. For example, if you search for “Skincare,” you’ll see relevant ads in the search results feed. You can tell the difference between ads and regular posts through a “Sponsored” tag under the account name.
Instagram is also launching Reminder Ads, which are designed to make it easier for businesses to announce, remind, and notify people about upcoming events or releases that might interest them. The idea behind Reminder Ads is to help advertisers build awareness and anticipation for upcoming events. events. Users can opt for reminders and receive three notifications from Instagram. Users will receive a reminder one day before the event or launch, 15 minutes before, and at the time of the event or launch. Reminder ads are rolling out to all advertisers as an option in the feed.
Image Credits: instagram
These new tools serve to increase the company’s ability to generate revenue at a time when Meta has been experiencing a drop in ad sales. As part of its fourth-quarter 2022 earnings results, Meta revealed last month that its advertising revenue fell to $31.2 billion from $32.6 billion in the same quarter last year. Meta’s chief financial officer, Susan Li, had noticed at the time that the company’s fourth-quarter revenue remained under pressure from weak advertising demand. Li said this was due to the “uncertain and volatile macroeconomic outlook.”
After Meta reported its first quarterly revenue decline in Q2 2022 amid declining ad sales, the company ramped up its ad load on Instagram with the launch of two new ad slots. Meta launched a new ad format for Facebook Reels and began allowing advertisers to run ads on the Explore homepage and profile feeds.
Meta isn’t the only company facing weak advertising demand, as Snap CEO Evan Spiegel told analysts last month that the demand for advertising has not improved. Spiegel said this was because advertisers managed their budgets at a time of economic uncertainty.
