Everything that is free must have a catch and, usually, it is through advertising that companies that “offer” services manage to monetize the investments made in “favor” of consumers. Undoubtedly, Facebook is one of the companies that earn the most in terms of advertising, namely on its main social networks: Facebook and Instagram.
If both already have advertising, there are still some company services that are still exempt, such as WhatsApp. But Facebook doesn’t stop figuring out where it can explore and increase advertising revenue and in recent days two new bets from the company were made known, one in testing mode and the other definitively. Virtual reality is where Facebook is testing the introduction of advertising, while Instagram Reels has taken on worldwide advertising after an initial testing phase.
Instagram anticipates Tiktok and introduces advertising on Reels
Get ready to start seeing ads on Instagram Reels. The Instagram video feed, which was created after the huge success of the Chinese TikTok app, will start to include ads today around the world. They will look like any other Reel – full-screen, looped, up to 30 seconds long – and will appear among other videos. Ads will be identified by a small “sponsored” tag below the advertiser’s account name, in the same style as in Storys.
Instagram started testing ads in Australia, Brazil, Germany and India in April, so it’s not surprising that this new ad format is made available worldwide, increasing the social network’s revenue and the exposure available to sponsors.
Next bet: virtual reality
If there is no great doubt about Facebook’s intelligent way of monetizing its services, then certainly virtual reality is an innovative way to do it and we are even curious to understand how it will work and if it will work.
Oculus has released a post on your site indicating that you are running a small ad test on your virtual reality devices. The test will begin with Resolution Games’ Blaston game and will be released in the coming weeks.
Facebook Reality Labs (FRL) says the main focus is “bringing more people to VR, promoting the consumer experience and advancing our long-term augmented reality initiatives”.
Adding ads helps create new ways for programmers to generate revenue. “This is a key part of ensuring that we are creating a self-sustaining platform that can support a variety of business models that unlock new types of content and audiences.” They add that it also helps to continue to make innovative AR/VR hardware more accessible to more people.
Once testing begins, the Facebook team will use feedback from developers and the community to improve and change the system, with more details about the ads being revealed in the future.
In the same publication, it is stated that Facebook’s advertising principles will be used to determine which ads people see that are relevant to them, and the possibility for the user to access the ads’ preferences will also be created.
Oculus will also add that it will not use data stored on Oculus devices to target ad, nor movement data, which guarantees the protection of user data.