Connect with us

Mobile

Facebook squeezes money from Instagram with new ads in Explore – TechCrunch

Published

on

Half of Instagram’s billion-plus users open its Explore tab each month to find fresh content and creators. Now the Facebook-owned app will do more to carry its weight by injecting ads into Instagram Explore for the first time. But rather than bombard users with marketing right on the Explore grid, Instagram will instead only show ads after users tap into a post and then start scrolling through similar imagery.

The move feels like a respectful way to monetize Explore without annoying users too much or breaking the high visual quality of the space. Instagram’s director of business product marketing Susan Bucker Rose tells me she believes the ads will feel natural because users already come to Explore “in the mindset of discovery. They want to be exposed to new accounts, people, and brands.”

Instagram will test the ad slots itself at first to promote its ailing IGTV feature before they “launch to a handful of brands over the coming weeks” Rose says. That includes both big name corporations and smaller advertisers looking to drive conversions, video views, or reach. Instagram hopes to roll the ad format out broadly in the next few months.

Advertisers will buy the slots through the same Facebook ads manager and API they use to buy Instagram feed and Stories space. At first advertisers will have to opt in to placing their ads in Instagram Explore too, but eventually that will be the default with an opportunity to opt out.

Here’s how ads work in Instagram Explore. When you open the tab it will look the same as always with a scrollable grid of posts with high engagement that are personalized based on your interests. When you tap into a photo or video, you’ll first see that full-screen. But if you keep scrolling down, Instagram will show you a contextual feed of content similar to the original post where it will insert photo and video ads. And if you tap into one of the themed video channels and then keep scrolling after watching the clip to check out more videos in the same vein, you may see Instagram video ads.

Instagram describes the introduction as “slowly and thoughtfully” — which makes it sound like the volume of ads will ramp up over time.

Explore was first launched in 2012, some two years after Instagram itself, as a merger of the app’s search and “popular” tabs, with an aim of using algorithms that were informed by your existing interests to give you a new way to discover new people and themes to follow in the app beyond those you might pick up by way of you own social circles. It’s had a few revamps, such as the addition of topical channels and hashtags, and the addition of Stories, the format that has proven to be such a hit on Instagram itself. There won’t be any ads in Stories that recently started appearing in Explore.

But interestingly, through all of that, Instagram stayed hands-off when it came to advertising and Explore. The idea is that the content that each person sees in Explore is individualized, with algorithms detecting the kinds of things you like to show you photos, videos and subjects you might most want to see. Apparently Instagram didn’t want to deter browsing of this content.

On the other side of the coin, this has meant that up to now, individuals and brands have not been able to proactively request or pay to be in anyone’s specific Explore tab — although that doesn’t mean that people don’t game this situation (just Google “how to get on Instagram Explore” and you will find many how-to’s to show you the way).

Instagram Explore Ads

The move to bring ads into the Explore experience has some logic to it. Even before monetization made its way to Instagram in the form of feed advertising, shoppable links and sponsored content posted by influencers, brands and businesses had started using the platform to promote products and to connect with customers. Instagram says that today, 80 percent of its users follow at least one business on Instagram. Now instead of trying desperately to game the Explore algorithm, Instagram can just sell businesses space instead.

With Facebook’s News Feed usage in danger as attention shifts to Stories that it’s still learning to monetize, the company is leaning more on Instagram to keep revenue growing. But Instagram must be sure not to suffocate the golden goose with too many ads.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Mobile

Snapcommerce raises $85M to make over your mobile shopping experience – TechCrunch

Published

on

People are not only shopping digitally more than ever. They’re also shopping using their mobile phones more than ever.

And for mobile-first companies like Snapcommerce, this is good news.

Snapcommerce, formerly known as SnapTravel, has raised $85 million in what the company is describing as a “Pre-IPO” growth round to help further its mission of “changing the way people shop on their phones.”

The Toronto, Ontario-based startup has built out an AI-driven, vertical-agnostic platform that uses messaging in an effort to personalize the mobile shopping experience and “deliver the best promotional prices.” While it was initially focused on the travel industry, the company is now branching out into other consumer verticals – hence its name change.

Inovia Capital and Lion Capital co-led the new growth round, which included participation from Acrew DCF, Thayer Ventures, Full In Partners as well as existing backers Telstra Ventures and Bee Partners. The financing brings Snapcommerce’s total raised since its 2016 inception to over $100 million. Its last raise — a $7.2 million round from Telstra and NBA star Steph Curry — took place in 2019.

The startup was founded by tech entrepreneurs Hussein Fazal, whose prior company AdParlor grew to $100+ million in revenue, then sold to AdKnowledge back in 2011; and Henry Shi, who previously built uMentioned and worked at Google, where he helped launch YouTube Music Insights, according to previous TechCrunch reporting.

Snapcommerce co-founders Henry Shi and Hussein Fazal, Image courtesy of Snapcommerce

Snapcommerce launched its first, travel-focused product in 2017. It works by using chatbots to interact with customers via messaging apps such as SMS, Facebook and Whatsapp. But the company also has human agents ready to help if people need more assistance, in the past essentially serving as on-demand travel agents.

Its service is not just for hotels and flights, but also to help people book restaurants and activities too.

“Our focus has been on building that personal relationship,” Fazal said. “Many people end up coming back to us when they travel again.” In fact, over 40% of its sales in 2020 came from repeat customers.

Over the years, the company claims to have helped more than 10 million users globally save over $75 million. It expects to cross over $1 billion in total mobile sales this year.

And now it’s ready to branch out into helping consumers save money on goods.

“When shopping, it’s hard to find the right product and even if you do, it’s hard to find a good deal,” he said. “On a desktop, there’s ways around it. But on mobile, it’s virtually impossible.”

The company turned the corner to profitability three months into the pandemic in 2020, seeing a 60% spike in sales in the second half of the year compared to H2 2019, according to CEO Fazal.

It then decided to re-invest its profits to continue growing the business.

“The profitability during the pandemic gave us confidence that we could turn to profitability whenever we needed to and gave us control of our own destiny, which enabled this fundraise,” Fazal told TechCrunch. “The third quarter of 2020 ended up being our greatest quarter ever.”

The COVID-19 pandemic, naturally, only accelerated its growth as more consumers turned to mobile.

“We believe the next wave of power purchasers will be via mobile,” Fazal said. “Some of the new generation don’t even have desktops or laptops, and they spend all their time on their mobile phone and messaging. So we’re able to be at the forefront.” 

Snapcommerce has an IPO in its sights although no specific timeline. The company did not reveal its current valuation or hard revenue figures. The company makes money by either marking up prices provided by a merchant or charging the merchant a commission.

Chris Arsenault, partner at Inovia and Snapcommerce lead investor, said his firm “tripled up” on its investment in the startup after witnessing its success in the travel space.

“Other companies out there only care about the transaction, and force consumers to look through several services to see if they got the best price, all the while telling them ‘there’s only 2 seats left,’ ” he told TechCrunch. “We believe that consumers aren’t going to accept that type of pressure-selling in the future. And Snapcommerce’s ability to build trust with its customers and service providers has attracted us to them as they are defining what the future of commerce is going to be like.”

Ultimately, the company plans to use its fresh capital to continue to scale with the goal of streamlining the entire mobile search, purchase and fulfillment process and make finding “the right item at the right price as sending a message to a trusted friend.”


Early Stage is the premier “how-to” event for startup entrepreneurs and investors. You’ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company building: Fundraising, recruiting, sales, product-market fit, PR, marketing and brand building. Each session also has audience participation built-in — there’s ample time included for audience questions and discussion.

Continue Reading

Mobile

Square buys majority of Tidal, adds Jay Z to its board in bid to shake up the artist economy – TechCrunch

Published

on

This morning Square, a fintech company that serves both individuals and companies, announced that it has purchased a majority stake in Tidal, a music streaming service. The deal, worth some $297 million, will Tidal allow artist-partners to keep their ownership in the music company.

Square CEO Jack Dorsey used his other company, Twitter, this morning to explain the deal. Dorsey seemed to expect the transaction to generate skepticism – which it definitely has. In his opening message, he asked a rhetorical question: “Why would a music streaming company and a financial services company join forces?!”

Why indeed. Dorsey’s expectation is that his company can replicate the success of Cash App and other Square products in the world of music. Noting that “new ideas are found at the intersection,” Dorsey argued that the confluence of “music and the economy” is one such point of convergence.

The deal also installs musician and businessperson Jay Z on Square’s board.

Some early reaction to the deal has proved negative. It’s not hard to riff on the seeming-strangeness of Square and Tidal as a pair. And Square has made acquisitions in the past that appeared adjacent and failed to stick. The company bought food-delivery service Caviar in 2014 before selling it to DoorDash in 2019, for example; that Square appears to have made a venture-level return on the transaction is immaterial to the focus argument.

But the bull-case for the Square-Tidal tie-up is easy to make as well. The American fintech just spent a minute fraction of a single percent of its market capitalization on the smaller company, and through its choice to let artists keep their stake, has effectively onboarded a host of ambassadors for its brand.

And Dorsey is not wrong that Square did shake up the commerce game for many offline businesses with its original card reader. Why not take a swing at a part of the economy — music — that has migrated from the physical world to the digital in the past few years, much like small businesses in recent quarters?

Square’s business users, it’s “seller ecosystem,” as it likes to call it, are increasingly digital. In its most recent quarterly earnings report, “in-person only” usage is falling as a percentage of seller gross payment volume (GPV), while “online only” and “omnichannel” GPV are taking up the slack.

Square has a known win in its consumer-focused Cash App service, which reached 36 million monthly actives in December of 2020, up from 24 million in the same period one year prior. You can imagine tie-ups between the music company and the youth-skewing Cash App audience. And having Jay Z at the Square boardroom table will hardly make the company less innovative; he may bring fresh perspective.

And then there’s the question of NFTs, or non-fungible tokens, a new form of digital asset that have recently become the cause célèbre of the cryptocurrency community. Given that Square has a growing cryptocurrency business via Cash App, and has invested hundreds of millions of dollars into bitcoin itself. If there is space in the market for Square to bring music-based NFTs to its larger consumer user base is an interesting question. If the answer is yes, Square could now be in a leading position to create that market.

Perhaps the Square-Tidal deal won’t generate the future growth that Square imagines. But the deal is cheap, snagging Jay Z as a leader is a win, and it’s hard to win by only playing corporate defense.

Continue Reading

Mobile

Twitter Spaces arrives on Android ahead of Clubhouse – TechCrunch

Published

on

Twitter announced today it’s opening up its live audio chat rooms, known as Twitter Spaces, to users on Android. Previously, the experience was only open to select users on iOS following the product’s private beta launch in late December 2020. The company says that Android users will only be able to join and talk in Spaces for the time being, but won’t yet be able to start their own.

That added functionality is expected to ship “soon,” Twitter says, without offering an exact timeframe.

The company has been working quickly to iterate on Twitter Spaces in the months since its beta debut, and has been fairly transparent about its roadmap.

Last month, the team developing Twitter Spaces hosted a Space where users were invited to offer feedback, ask questions, and learn about what Twitter had in the works for the product in both the near-term and further down the road. During this live chat, Twitter confirmed that Spaces would arrive on Android in March.

It also promised a fix to how it displays listeners, which has since rolled out.

Other Spaces features are being shared in public as they’re designed and prototyped, including things like titles and descriptions, scheduling options, support for co-hosts and moderators, guest lists, and more. Twitter has also updated the preview card that appears in the timeline and relabeled its “captions” feature to be more accurate, from an accessibility standpoint.

The time frame of some of its new developments  — like Android and scheduling options — were being promised in a matter of weeks, not months.

This fast pace has now led Twitter to beat its rival Clubhouse — the app currently leading the “social audio” market — to offer support for Android. Today, Clubhouse remains iOS-only in addition to being invite-only.

It’s also indicative of the resources Twitter is putting into this new product, which was first announced publicly just in November. Clearly, Twitter believes social audio is a market it needs to win.

The company also sees the broader potential for Spaces as being a key part of a larger creator platform now in the works. During its Investor Day last week, Twitter spoke of tying together its new products like Spaces, Newsletters along with a “Super Follow” paid subscription, for example.

It’s now also testing a Twitter “Shopping Card” that would allow users to tweets posts that link directly to product pages via a “Shop” button — a feature that would seem to fall under this new creator focus, as well.

Some Twitter users on Android had already found their way to Spaces before today’s announcement by way of the Twitter beta app on Google Play.

But now, a separate beta app won’t be required — when live Spaces are available, they’ll appear at the top of the Twitter timeline for Android users to join.

 

 

Continue Reading

Trending