Instagram to increase ad load as Meta fights revenue decline

Instagram to add two new ad slots as Meta fights revenue decline in the second quarter.

After another quarter wherein marketers have slashed their ad spending, Meta today announced it’s increasing its ad load on Instagram with the launch of two new ad slots. 

In addition to a music catalog for advertisers and a brand new ad layout for Facebook Reels, Meta announced that advertisers would now be able to run ads on the Explore home page and in profile feeds.

Instagram Reels started rolling out 30-second ads globally last year, followed by Facebook Reel commercials earlier in 2022. Now, the new format being examined will contain shorter ads on fb Reels mainly. 

 Furthermore, as it struggles to monetize its TikTok competitor, Reels, the company is introducing new Instagram advert placements to boom the surface for advertisements.

Meta’s inability to monetize Reels was cited among the factors contributing to the decline in Q2. As Mark Zuckerberg explained to investors, “Reels doesn’t yet monetize at the same rate as Feed or Stories. So in the near term, the faster that Reels grows, the more revenue that displaces from higher monetizing surfaces,” he said.

In addition to the new designs, Meta introduced other changes to create more effective ads, such as the use of AI.