Tech
Revenue from Instagram Stories Will Surpass Snap This Year
Nomura analyst Mark Kelly forecasted that the revenue from Instagram stories ads will grow 4 times as that of Snap’s.
It has been only 2 years since Instagram has introduced ads in its stories. Apparently, the idea which was stolen from Snapchat, became one of the factors that led Instagram to victory as compared to the Snap. According to the analyst, the Instagram stories ad revenue would be over $2 Billion this year. And by 2021, this feature of Instagram can easily generate $7.5 Billion for Facebook.
Talking about Snap, the ad revenue is expected to be around $1.5 Billion this year. And this marks a 30% increase for Snap as compared to the last year. Though 2018 had been a terrible year for Snapchat, the management is expecting to grow back this year. However, so far, the 1st quarter does not look very promising for Snap with the continued decline.
One of the reasons for this decline is attributed to the success of Instagram stories. Add to that some of the wrong decisions taken by Snap the previous year. All compounded, brought a decline in the company’s revenue.
There is no doubt that the stories are becoming popular among people as a sharing medium. Mark Zuckerberg, the CEO of Facebook, once shared, “Stories are on track to overtake posts in feeds as the most common way that people share across all social apps.” And today, the Instagram story feeds are totally saturated with the advertisements from different companies and brands, leaving no scope for overdoing it.
That would mean increase in the price of Instagram ads for the companies, leading to growth in the ad revenue. Since the stories have become highly profitable for the companies, many today are buying Instagram followers just to increase the visibility of their stories. And that is also contributing towards power of Instagram over the Snap.
Tech
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