Meta announced it will increase ad load on Instagram with the launch of two new ad slots, which include a music catalogue for advertisers and a new ad format for Facebook Reels.
The move is part of the company to fight against revenue decline. Meta hopes the two ad features will allow brands or advertisers to run ads on the home page and profile reels.
The company chief Mark Zuckerberg told investors that home feed and stores bring more ads revenue than reels for now.
“Reels doesn’t yet monetise at the same rate as Feed or Stories. So in the near term, the faster that Reels grows, the more revenue that actually displaces from higher monetising surfaces,” said Mark Zuckerberg.
“Ads have always been an important part of Instagram. We closely monitor people’s sentiment on both for ads and overall commercialism” said Meta spokesperson.
“From ads in Feed, Stories, Explore and Reels, we’re continuously thinking about new ways to help advertisers and brands get discovered. These new ad formats and tools aim to help brands tell their story, reach new and existing customers, and grow their businesses.”
