Instagram Reels Will Now Show Advertisements, Says Facebook
Facebook announced on Thursday that advertisements will show globally on its TikTok rival Instagram Reels. In April, the social media platform began testing Instagram Reels ads in India, Australia, Brazil, and Germany. The company has the goal of earning revenue from its short-form video feature.
Instagram Reels Will Now Show Ads
The test ran with brands like BMW, Louis Vuitton, Netflix, and Uber. “We see Reels as a great way for users to discover new content on Instagram, and ads are a natural fit,” said Justin Osofsky, Instagram’s Chief Operating Officer. “This new creative format can benefit brands of all sizes in an environment where customers are already entertained.”
Instagram Reels ads, which will loop and last up to 30 seconds, will surface between individual Reels, according to the company.
Facebook announced on Wednesday that it will start testing ads through its virtual reality Oculus headgear. It has partnered with a number of game companies, like Resolution Games.
The small-scale test of virtual reality ads serves as a link between Facebook’s core revenue source of digital advertising and its expanding investment in virtual reality technology. This is the next big thing after smartphones.
Facebook claims it would use the test to look into ways to make it easier for developers to make money on the Oculus platform.
Over the next few weeks, advertisements will start to show in Blaston, a VR game, as well as other titles. Oculus users can hide individual commercials or select not to see ads from a specific advertiser, according to Facebook.
Meanwhile, as per Bloomberg, TikTok seems to have quite a large audience and its advertisements have been really successful. So successful that the business expects to charge up to $2 million for a one-day takeover. While TikTok’s popularity grows, Instagram Reels retains the significant benefit of having Facebook’s backing and having to tap into this already popular app.
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