Facebook launches ad service on Instagram Reels

2 min read | June 17, 2021 06:25 PM PDT | By Team Kalkine Media

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Facebook launches ad service on Instagram Reels — Image source: Ink Drop,Shutterstock

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Summary

Facebook’s daily active users as of March 31 was 1.88 billion, an increase from 1.84 million in December 2020.

Facebook segments the users in various categories, such as location, gender, behavior, and interests, for ads on Facebook, Instagram, WhatsApp, and Messenger.

The ads will be of 30-second duration. The company is confident that it would generate significant revenue from the Instagram Reel ad service.

Social media giant Facebook Inc. (FB) said on Thursday that it launched ad services on Instagram Reels. Facebook had acquired Instagram in 2012.

The Instagram ad service will give companies another platform to show their presence. Instagram, used for sharing photos and videos, has become popular since its launch in 2010.

Instagram Reel was free of ads until now.

Facebook’s daily active users as of March 31 was 1.88 billion, an increase from 1.84 million in December 2020. Its monthly active users were 2.85 billion in the same period, a 10% increase YoY. Facebook’s products are Instagram, Messenger, WhatsApp, and Facebook Reality Apps.

FB’s primary source of revenue is advertising. It earned US$26.17 billion in the March quarter of 2021. Advertising contributed around 97% of revenue. A major portion of the revenue comes from the US and Canada, accounting for 44% of the total revenue in the quarter.

The company sells advertising placements to marketers.

Facebook segments the users in various categories, such as location, gender, behavior, and interests, for ads on Facebook, Instagram, WhatsApp, and Messenger.

Source: Pixabay.

Also Read: Top reasons why Facebook ads are vital for business growth

Before launching the service, Facebook had conducted a trial run of the feature on Instagram Reel in countries like India, Brazil, Germany, and Australia in April, Reuters reported.

The ads will be of 30-second duration. The company is confident that it would generate significant revenue from the Instagram Reel ad service.

Facebook shares were up 1.64% to US$336.51 at Thursday’s market close.

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