Instagram explores pop-up ads in Stories as it cranks up ad loads

The news: Meta is testing inserting pop-up ads into Instagram Stories, per 404 Media.

• Ads “pop up” at the bottom of the screen in a semi-translucent banner when viewing Stories. At the moment, Meta appears to be using the space to advertise its other features, namely games on its metaverse platform Horizon Worlds.

The search for more ad space: The new ads in Stories are part of a broader effort from Meta to expand ad formats and available space on Instagram.

• Earlier this month, Instagram similarly began testing unskippable video ads that appear in the regular feed and cannot be bypassed until a timer ends. While the unskippable format increases ad attention, it interrupts the app’s experience and garnered a strong negative reaction from users.
• Pop-up ads in stories have similarly sparked an outcry from users frustrated with Instagram’s advertising push, calling back to when members of the Kardashian family criticized the app’s move into video in 2022.

Moving the needle: But unlike 2022’s outcry over the app’s video focus, which drew a response from Instagram chief Adam Mosseri, the platform is unlikely to abandon its advertising plans unless it begins to affect time spent on the app.

• Time spent on Instagram is still rising, albeit at a slower rate than in recent years. After a 13.9% spike to 15 minutes daily last year, US time spent will grow just 5.5% this year to 16 minutes, per our forecast.
• Instagram isn’t the only platform increasing ad loads and embracing unskippable ads. YouTube has similarly pulled that lever and spent the last 12 months making it more difficult for users to browse its platform while using ad blockers.
• While that’s sparked a negative outcry, YouTube is reaping the benefits. The video platform generated $8.1 billion in revenues in Q1, up 20% year over year. While that growth can be attributed to the launch of products like NFL Sunday Ticket, higher ad impressions likely also contributed.