Instagram is offering marketers and advertisers credits for and free trials of its ad products, according to Business Insider.
Further, some existing Snap advertisers are starting to question the value received from running campaigns on the platform.
As Instagram quickly duplicates Snap’s most successful features and rolls them out to its wider audience, it’s important that Snap clearly differentiates its offering to advertisers, and pricing may have to come down.
- Snap was already offering discounts for its ads. Back in May, Snap was offering discounts to agencies and brands to lure them onto the platform. Instagram’s free trials and ad credits can drive Snapchat to give even steeper discounts than it already does.
- Snapchat’s lack of organic reach metrics as could drive advertisers to Instagram. Publishers know exactly how many followers each of their Instagram accounts have, and how many times a user has interacted with a certain post. Snapchat, on the other hand, is something of a black box. While the company does have ad metrics available for its clients’ campaigns, advertisers can’t actively track the number of people they reach organically through the app.
- Discounts encourage experimentation with new ad formats. Offering discounts is a common practice for tech giants when rolling out new products — Facebook, Google and Twitter have all offered them in the past.
BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on U.S. digital media ad revenue that:
- Forecasts US digital ad revenue through 2021.
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- Explores why digital video advertising growth will exceed all other formats over the next five years.
- Outlines emerging technologies that will help propel ad growth in the next decade.
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