Instagram is Working on a New Ad Unit for Sponsored Posts

Instagram is set to roll out a new ad format for sponsored posts published by influencers.

AdAge reports the new format is called a “branded content ad,” and is part of a larger strategy to build formal partnerships between brands and creators.

Currently, the solution that Instagram offers is largely informal.

Brands can sponsor popular Instagram users and sponsored posts appear with the tag “Paid partnership with [brand name].”

The limitation of those posts is that they only reach the followers of the influences.

Branded content ads will be similar to other ads on Instagram where advertisers can promote the posts to appear throughout the network.

Further, anyone will be able to apply to join the new branded content program. Instagram’s existing branded content partnership program is not available to everyone.

Ashley Yuki, an Instagram product management lead, tells AdAge that these ads have been in testing since last year.

According to Mediakix, influencer marketing on Instagram is expected to be a $2 billion market in 2019.