Instagram recently announced branded content ads, a new addition for marketers’ Instagram advertising strategies.

What Are Instagram Branded Content Ads?

Because so many Instagram users cite the reason for joining Instagram as a way to interact with creators, Instagram has given brands a way to leverage creators’ and influencers’ voices.

Instagram branded content ads allow brands to reach new prospects, those follow the influencer posting the ad. Branded content ads also allow brands to easily measure the impacts of their ad campaigns.

Branded content ads, when viewed in Instagram news feeds, will include the “Paid partnership with…” tag and the brand name.

Why Is Instagram Releasing Branded Content Ads?

Instagram is investing in branded content ads to maintain transparency and provide high-quality user experience for its users, but also to increase ad revenue.

Statista reported the global Instagram influencer marketing industry was worth $1.07 billion in 2017 and is expected to reach $2.38 billion in 2019. By offering branded content ads that work with influencers, Instagram is keeping revenue within their platform as brands pay Instagram for these ads with a percentage going to influencers.

What Do Instagram Branded Content Ads Mean For Digital Marketers?

For digital marketers, transparent advertising is now available on Instagram. Using branded content ads can enlarge prospective audiences and grow brand awareness. By pairing influencers’ target audiences with brands’ target audiences, brands can target their ideal consumers and encourage interaction with new prospects.

Plus, with branded content ads, advertising on Instagram is simpler for brands. Brands don’t have to build and maintain multiple relationships with various influencers. Instead, these brands can rely more on Instagram to align influencers with their objectives.

As industry competitors, like Snapchat, increase their advertising initiatives, Instagram battles to be at the forefront.

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