Will 2019 see even more advertisers move from Facebook to Instagram?
The social blast in the advertising sector at the start of the year will see more advertisers shift from Facebook to Instagram. Major players in the field remain sceptical that those Ad dollars will continue to change from Facebook to Instagram in 2019. The social bakers have pointed out that the major reasons for the shift include stronger stories and engagement. Instagram continues to record a consistent move while the ad dollars on Facebook have remained at a standstill. Facebook experienced a lacklustre Q2, recording slower user-growth than the anticipated revenue.
The firm’s poor performance culminated in the largest one-day dive in the history of the American stock market with the stock on Facebook lowering to 19%, costing the firm $120 billion in just one day. David Wehner, the Facebook CFO explains that they attempted to streamline the firm’s lost revenue and slowed the user growth in the Q2 of 2018 earning calls.
The CFO also warned that the poor results might continue as far as Facebook continues to focus more on stories. The other reason is that users have continued to focus more on the new privacy regulations. Many factors have been linked to the decrease. A case in point, the currency is likely to a headwind in the second half based on the tailwinds experience over the last numerous quarters. Wehner has also hinted that they have rolled down plans to promote and expand specific engaging experiences including stories that have low monetisation levels.
Facebook is also providing followers who use their services with more options on data privacy which is expected to impact positively on the social media platform’s revenue. As Facebook tries to come to terms with the dry spell, the social blast on Instagram is iconic and the less popular app is now a darling of the younger generations and provides fresher content showing that the social media advertising platform has positioned itself to make more gains in the coming days.
Kevin Systrom, Instagram CEO claimed in June that the app had already surpassed the one billion user mark. Thousands of advertisers have also shifted from Facebook’s News Feed to Instagram resulting in a substantial increase in ad dollars and user growth. Advertisers are also spending more on Instagram. Merkel has also reported that Instagram is growing at a rate of four times higher than the Facebook ads. The expenditure on Instagram ad increased by 177% during the Q2 compared to the 40% increase recorded by Facebook. Facebook still attracts higher spending in overall compared with Instagram whose growth curve has become steeper. Amongst its clients, 4C recovered a higher rate of ad spending growth on Instagram. AdStage also continued to widen the gap recorded between Facebook and Instagram. Experts and pundits are eager to see how the social blast between Facebook and Instagram unfolds in the coming years.