In­sta­gram’s dig­i­tal ad share to dou­ble

Photo-shar­ing app still grow­ing, de­spite pri­vacy con­cerns

The Mercury News Weekend - - BUSINESS - By Ka­maron Leach

In­sta­gram is poised to reign as the dar­ling of Face­book apps, of­fer­ing a life boat for the core plat­form dur­ing a bout of pri­vacy con­cerns.

Cowen says the photo-shar­ing app’s share of dig­i­tal video bud­gets from ad buy­ers will dou­ble from 2018 to 2020. In fact, In­sta­gram has grown as the go-to choice for launch­ing new brand cam­paigns look­ing to reach ages 13 to 34, ac­cord­ing to 61 per­cent of sur­vey re­spon­dents to a Cowen study rep­re­sent­ing about $14 bil­lion in ad spend.

“Sto­ries” — a rel­a­tively new In­sta­gram fea­ture — are help­ing to grow the app into a cam­paign fa­vorite. In­sta­gram Sto­ries ap­pear “poised for greater adop­tion” as more ad buy­ers al­lo­cated some por­tion of their spend to the fea­ture in 2018 than the year prior, said Cowen’s John Black­ledge in a note. In­sta­gram even beat out TVin this younger tar­get group, a medium only 3 per­cent of re­spon­dents said­was a pri­mary plat­form.

The story changes when look­ing at peo­ple 35 and up. The sur­vey in­di­cated Face­book’s core plat­form re­mains es­sen­tial for brand agen­cies tar­get­ing the group, which bested both YouTube and In­sta­gram but lagged the old-faith­ful tele­vi­sion. All in all, Cowen sees these trends as growth driv­ers for the par­ent com­pany to ex­pand its video con­tent over the next two to three years.

Face­book shares fell as­much as 2.4 per­cent in­tra­day in New York amid a pull­back in the broader mar­ket. Cowen low­ered its price tar­get on Face­book’s out per­form rated stock to $184 per share from $195.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.