Since the Facebook is running out of places to display ads in its News Feed, the core way to make money, it is now turning to its other applications – WhatsApp, Messenger and Instagram for revenue growth.
In accordance to a report by RedCode, Facebook has stated that it cannot put more ads into users’ feeds without harming their experience.
As per the report published on Saturday, “The industry term for this is the ratio of ads to other content, called ‘ad load’, and Facebook says News Feed’s ad load is all maxed out hinting that its revenue growth might slow down ‘meaningfully’ this year due to this.”
Therefore, it has now started selling mid-roll video ads and is also funding video projects which could be hosted along with those ads.
It has started displaying ads inside Instagram Stories and on its other platforms like Messenger, WhatsApp and Facebook itself to make more money.
Last month, its CEO Mark Zuckerberg informed that the platform has two billion users. Currently, WhatsApp has 1.2 billion users. As far as Instagram is concerned, it has over 700 million monthly active users. Hence, these places are worth placing the ads.