Instagram will start putting ads in search results
In an effort to support the struggling ad business amidst the current challenging economic climate, Instagram is testing two experimental ad formats: ads in search results and Reminder Ads. These new formats will provide companies with more opportunities to promote their products or services.
As the name suggests, ads in search results will enable businesses to show ads to users who are actively searching for products, businesses, or content on Instagram. This means that when users search for a particular term on Instagram, such as “Galaxy S23,” they may see sponsored posts in the feed alongside the actual search results. Instagram intends to launch this feature globally once testing is over.
On the other hand, Reminder Ads will allow businesses to announce, remind, and notify users of upcoming events or launches. Therefore, when users opt into Reminder Ads for a particular event, they will receive notifications from Instagram one day before, 15 minutes before, and when the event begins. These notifications will appear like any other Instagram notifications and will be visible on the user’s lock screen.
Meta’s push towards increased ad revenue
It’s no secret that with the help of the new ad formats, Meta aims to increase its struggling ad revenue. In the Q4 2022 earnings report, Meta reported a decrease in ad revenue from $32.6 billion to $31.2 billion, with a year-on-year ad revenue drop from $114.93 billion in 2021 to $113.64 billion in 2022.
The company attributed this decline to weak advertising demand, which is caused by the uncertain and volatile macroeconomic landscape. However, Meta hopes to combat the decline with these new ad formats and job cuts. After laying off 11,000 workers in November, the company announced another round of 10,000 job cuts aimed at reducing operational costs.
While the new advertisement format will provide businesses with additional opportunities to advertise and increase revenue, it remains unclear whether users will welcome these new ads. Only time will tell if these new ad formats will be effective in boosting Meta’s ad revenue or not.