Advertisers Reluctant to Invest in Non-Newsfeed Instagram Ads, Cowen Reports

Although we see a lot of ads on Facebook and Instagram, but that does not mean that the company is booming with dollars by it. The growth of Facebook’s advertising business is slowing down, which is why it is encouraging advertisers to invest in Instagram stories and Explore tab ads.

Cowen, a financial services firm reported (as cited by BusinessInsider) that the advertisers are reluctant to invest their advertising dollars in the Instagram Explore tab and stories ads.

To come to a conclusion, Cowen surveyed about 50 advertisers in the US who spent about $12.5 billion on advertising in 2019.

Cowen found that only 64% of the advertisers invested in the Stories ads in 2019. From the data, it is evident that 72% of the Instagram ads will be seen on newsfeed this year. A lot of advertisers appreciated Instagram as it is affordable and directly target the consumer, which is the best thing.

However, when it comes to Instagram Stories, advertisers are reporting challenges related to results.

Despite the reluctance to Instagram Stories, they are still more favored than the Snapchat Stories.

Cowen also mentioned that Instagram Explore tab is not much favorable as compared to news feed ad as only 24% of advertisers is willing to invest in them in 2020.

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