Today, Instagram announced that video ads would be released to the Stories feature. The ads are set to autoplay in-between Stories. Instagram plans on testing this ad system with 30+ clients such as Nike, Netflix, and Capital One.
Social media platforms are often free to use but are managed by hundreds of paid employees in expensive offices. Monetary gain stems largely from utilizing ad revenue wherever attainable.
Instagram is also adding insights from Stories to its business tools so advertisers can get a better idea of the viewership.
Snap is also testing two features with Snap Ads for January. Deep-linking and web auto-fill. Deep linking allows for Snapchat users to tap a link and be redirected to a specific spot within another application. Web auto-fill makes it easier for potential costumers to enter their information. In addition, Snap will now bill their advertising revenue from the U.K. through a U.K. entity, which allows them to pay taxes in the U.K.
Consumer data gets handed to social media every day. Companies then use the data for targeted ads for maximum clickability.