As brands continue advertising on Instagram, parent company Facebook will rely more heavily on its advertising dollars. By the end of 2020, Instagram ad revenue is projected to be at 30% of the entire company’s ad revenue. Because of increased engagement with Stories, advertisers are spending more money on Instagram. Compared to Facebook, ad spending on Instagram is 23% higher, according to an internal study.
One in three Instagram posts that contained the hashtag ad were Story posts. With the new Creator type account, 2020 might see a change in how sponsored content is displayed and analyzed. This is exciting because it means that there are some incredible growth opportunities available for advertisers on Stories. Instagram also recently added the branded partnership tag to IGTV, so a new content type might soon crop up in influencer advertising opportunities. Shopping is a strong feature that will surely become even more developed in the future. After seeing a product or service on Instagram, 79% searched for more information, 37% visited the retail store and 46% made a purchase.
Selling on Instagram is a valuable feature for brands who sell products. It’s yet another sales channel for brands to pull consumers in. When 65% of consumers visit the brand’s website or app after seeing a product, it makes Instagram an even more powerful marketing tool. To fully take advantage of selling, add call to action links directly in Stories or ads that you run. Product tags on Instagram will also enhance the shopping experience for users.