Facebook (FB) has been running out of space on its news feed to post more ads. The issue has already been causing the company’s growth to slow down. Now, the social media giant has been looking for new growth avenues.
Facebook has turned to its Instagram app for its next growth phase. Instagram is looking to place more ads on its popular Explore tab. The tab is the section on Instagram where the app suggests content to users. The users might be interested in the content from accounts they don’t follow yet.
Instagram is putting ads into the Explore tab, which is viewed by more than 50% of its one billion users, according to the company’s press release on June 26. Instagram said that it’s slowly launching ads on the Explore tab in the coming months.
Facebook is monetizing Instagram
Facebook has been trying to get more money from Instagram—its fastest-growing app. Earlier this year, the company launched a feature that allowed Instagram users to buy advertised products without having to leave the app. As a result, Instagram is more valuable to advertisers. The company also has more information about its users, as a result.
More monetizing options have been driving Facebook stock this year. Facebook has risen more than 41% year-to-date.