O Facebook ordered the Instagram to double the number of ads within the app, with the aim of increasing revenue as people stop using the news feed and migrate from the social network; is what a report from the The Information behind the scenes of the two companies. Instagram’s revenue jumped from $ 1 billion to $ 10 billion in just two years.
Adam Mosseri became head of Instagram after co-founders Kevin Systrom and Mike Krieger resigned from their positions and left Facebook. “In the 11 months or so since Mosseri took over… Facebook has ordered Instagram to double the number of ads on the app,” according to The Information.
At the end of last year, the Instagram ad team was ordered to increase the number of advertisements. In 2018, Instagram’s revenue exceeded $ 10 billion, a notable growth; revenue was $ 1 billion in 2016.
Instagram already had ads in the feed and Stories; since June, you can also find them in the Explore tab. This section is accessed by 50% of users every month; according to the company, “Is one of the best places for people to discover, buy and connect with other people, businesses and content creators”.
In addition, Instagram has been testing the Checkout tool to sell products directly through the app, either through the feed or Stories, with native payment via debit or credit card.
Users (and ads) migrate from Facebook to Instagram
Why is all this? Facebook still depends a lot on the ads in the news feed, but it knows that users are switching to Instagram – so the advertisements are also shifting. One analyst estimates that Instagram will have $ 15.8 billion in revenue in 2019, about 23% of Facebook’s total.
The co-founders of Instagram left the company because Mark Zuckerberg wanted to exercise more control over the app. The CEO succeeded, of course: the application now adopts the name “Instagram from Facebook” in some parts of the interface; and Direct must be integrated with WhatsApp and Messenger. In addition, Instagram and WhatsApp employees are being migrated for accounts @ fb.com corporate email.
With information: Mashable.