At 150 Million Strong, Instagram Brings Skippable Ads To Stories

On Wednesday, Instagram announced that its Stories feature will debut skippable advertisements, and brands will soon be able to place five-second photos or 15-second videos between user content.

The popular photo-sharing app, which is owned by Facebook FB, launched Stories about 6 months ago. Users can post photo and video slideshows that disappear after a 24-hour period, a shamelessly similar concept to Snapchat Stories.

Instagram Stories’ ad style will also copy that of Snapchat’s, all in the hopes of creating a more natural viewing experience. About 30 top brands have already committed to begin testing these skippable ads later this month, including Nike NKE, Netflix NFLX, General Motors GM, Capital One COF, and many others.

Despite its penchant for copying, Instagram Stories is growing incredibly quickly. The platform now has 150 million daily active users, about as many users as the last number announced by Snapchat. It helps that Stories is located right at the top of the Instagram home screen instead of a separate tap.

Monetizing a young feature is risky, but it’s clear that Instagram believes Stories’ growth is strong enough to take on further competition from Snapchat and any drop-off in users that the ads may cause.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank.  Be among the very first to see it>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Netflix, Inc. (NFLX): Free Stock Analysis Report
 
Capital One Financial Corporation (COF): Free Stock Analysis Report
 
Nike, Inc. (NKE): Free Stock Analysis Report
 
General Motors Company (GM): Free Stock Analysis Report
 
Facebook, Inc. (FB): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Comments on NFLX stock

Do share this awesome post