Instagram's new Explore page ads will bring more opportunities for marketers—but they also raise concerns about the limit of organic reach, which some claim has already happened in the Instagram feed. Savvy marketers have established best practices to get their content featured on Explore, but when ads are introduced, it could become more challenging to appear there organically.
“The fact that organic reach may be falling on Instagram is a huge issue, but one that marketers should have been prepared for," eMarketer principal analyst Debra Aho Williamson said.
"Anyone who paid attention to the decline in organic reach that happened on Facebook a few years ago should have known that a similar decline would come to Instagram as the revenue push got stronger. In general, marketers should expect that paying to reach consumers on Instagram will become more and more necessary, whether in Explore or in the feed.”
Instagram announced at the end of June that it will start placing ads on Explore, the discovery page where users are shown curated content based on their interests and can discover content from accounts they don’t follow. This marks the first significant expansion of ad placements beyond Stories and the traditional feed. It also comes at a time when Facebook has become more dependent on Instagram for ad revenue growth.
Additionally, Explore ads come on the heels of the launch of Instagram Checkout, which gives users the ability to purchase products directly through the app. The Explore page has a shopping category of its own—which already consists of mostly shoppable posts—and Explore ads will likely appeal to marketers who are looking to utilize the app’s social commerce features.
“People who visit Explore are open to discovering new things,” Williamson said. “That’s what the page was built for, and it lends itself well to shopping-related advertising.”
Instagram’s ad revenues are increasing more quickly than those of Facebook and its other entities, so it makes sense that the company would want to introduce as many ad placements as possible. We expect Instagram’s US ad revenues will grow 46.8% this year, surpassing $9 billion. Facebook’s non-Instagram segment, by comparison, will grow by just 11.2% this year.