Digital Gabe
Cutting Edge Commentary On All Things Media

Facebook Pivots From News Feed To Instagram Stories

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Ever since Facebook’s News Feed feature launched is 2006 it’s been plagued with finding the right balance between brand presence and meaningful content users want.  As a result FB has vacillated between going all in on ad placements and then making hard pullbacks to clean up the user experience.  Throw in more recent concerns about brand safety (the line between legitimate and inflammatory content is blurrier than ever), and you’ve got more brands than ever pressing pause on their News Feed campaigns.

Given this headwind FB is making a perceptible shift away from monetizing News Feed in favor of Instagram’s Stories. The Stories fuctionality, with its 400M DAUs, is a sleeping giant in digital media.  Ads on Instagram Stories are a quarter the price of News Feed ads and boast 2-3x the engagement rates – seems like a better deal for brands, right?  As a result more advetisers than ever are flocking to Instagram, which could provide the next era of ultra-growth for FB.

In a way this is a case study in the value of asset diversification.  Whether FB new it or not at the time, paying $1B for Instagram back in 2012 ended up becoming a great alternative strategy for their ailing mothership.

 

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