Instagram, with its more than 1,000 million users, is a platform where Facebook can not afford not to place ads. But although this social network has two thirds less ads than Facebook, it is approaching the saturation point of advertising. The balance between user content and ads is about to break if you continue adding advertising.
“Facebook knows it can not show many more ads on Instagram if it ruins the user experience.”
Of course, this is a headache for Facebook, since its main revenues come from advertising, mainly mobile devices. The company has begun to warn its investors that advertising revenues in 2019 may be subject to a deceleration. This is because Facebook and Instagram feeds are already overflowing with ads, as confirmed by David Wehner, the head of the financial section of Facebook.
So far, Facebook’s revenue from advertising has grown 37% year-on-year, reaching a total of 56,000 million dollars in 2018, year in which the social network got a million more advertisers. This constant flood is unsustainable, and in fact, it is increasingly expensive for the seven million advertisers on Facebook (and the new ones that are arriving) to advertise on the platform.
But the situation is worse on Instagram. The ads in this social network’s feed are more expensive (an average of 85 cents per click in the US) than those advertised in the Instagram Stories (53 cents per click) and the Facebook feed (18 cents per click). click), and it seems that prices will not stop rising.