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Facebook's revenue forecasts that alarmed investors, fueling Thursday's worst day of its actions, add to the pressure exerted on its Instagram device to attract more advertising buyers who have long been successful on the market. flagship application of the company. 19659002] Instagram and Facebook users see roughly the same number of ads, but Instagram prices are half of those charged by Facebook because of the limited number of ads. advertisers arguing over Instagram, said four buyers.
Instagram revenue to overcome the decreasing use of Facebook's main application. The social media business suffered the biggest single-day collapse in the history of the US stock market, losing more than 120 billion dollars (about 8.2 million rupees of rupees) in terms of market capitalization. Instagram users are not used to clicking on links in messages, which makes the service less effective for generating online shopping than Facebook, said Erik Huberman, founder of the agency. Hawke Media
There is a lack of audience ratings for Facebook ads, he added.
"There are fundamental issues with the platform … Marketing would be hesitant to increase spending on Instagram," Huberman said.
Some advertisers who are fond of Facebook are seeing lower results on Instagram, according to advertising buyers. Others have been blocked by the top bar for catchy content on Instagram and a general malaise among advertisers about a newer service, advertisers said.
"A lot of companies do not post ads on Instagram because the reality is they do not have the content to play on Instagram," said David Herrmann, director of advertising at Social Outlier, which spends nearly $ 15 million each quarter on Facebook ads on behalf of customers. "A local flooring company will not seduce Instagram, like Facebook."
Instagram is the slice of revenue for its fastest-growing parent company, but it attracts 4 million advertisers a month on a global scale. As Instagram aired more ads, the average price per ad for the entire Facebook app family declined in two consecutive quarters after a year of hike. The latest results prompted Scott Devitt, an analyst at Stifel, Nicolaus & Co, to bring back from $ 14.64 billion the estimate of the Instagram business figure for 2019 to $ 13 billion, with a drop in forecasts of prices and points of view. 19659002] Instagram and Facebook declined to comment on this story.
The company's executives have reasons to be optimistic. In the second quarter, the average price of a 1,000-fold ad was $ 4.70 on Instagram, twice as fast as the standard Facebook ads compared with the previous quarter, according to data from the firm's Kenshoo Marketing
Mark Smith, of True Interactive's advertising buying agency, spends $ 25 million a year on Facebook and Instagram for clients like Redbox and Montage Hotels.
Advertisers, including the replication of a Snap Inc advertising design tool launched last year, could help reduce apprehension among other advertisers, said Chris Costello, senior director from Kenshoo's marketing research
. videos and let them have multiple photos in an ad. According to Costello, Tom Buontempo, chairman of the advertising agency Attention, said the first step was to entice more companies to open free Instagram accounts, which is necessary to advertise.
"Surprisingly, there are still a number of advertisers who have not exploited the potential of Instagram's advertising products," he said
© Thomson Reuters 2018
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