[eMarketer] Mixed fortunes for story ads
Stories have become a popular venue for social media advertising, but there are already signs of a spending plateau.
In 2020, the primary venues where marketers placed Story advertising were Instagram, Snapchat, and (to a lesser extent) Facebook. In recent months, LinkedIn launched its own Story ad format (and so did Twitter, before it decided to pull the plug on the Fleets feature entirely). We expect Pinterest will also introduce ads in Idea Pins.
The platforms are probably hoping to snag a portion of the expected increase in Story ad budgets this year. In July 2020 research by Kantar Media, senior marketers worldwide were planning to raise their ad budget or resource allocation for social media Stories by 54% in 2021—second only to the 65% increase for digital video ads.
According to eMarketer, these plans may run into a few obstacles, especially on Instagram, which we estimate will generate nearly $44 billion in global ad revenues this year (with about $25 billion coming from the US).