Instagram has introduced a new way for advertisers to reach potential customers by enabling ads in search results through the Instagram Marketing API. When users search for specific terms, such as "Skin Care," customized ads will appear in their search results feeds, accompanied by a "Sponsored" label below the advertiser's account name. This move is expected to provide a revenue boost for Meta, which has been experiencing a decline in advertising demand.

In an effort to combat falling ad sales, Instagram first announced that it would test ads in search results back in March. They aimed to target users actively searching for businesses, products, and content, creating a more effective advertising platform. The launch of this new ad placement may not appeal to all users, as ads now occupy an additional area within the social network.

In a blog post, Instagram stated, "Starting today, we now allow for ads in Instagram search results via the Instagram Marketing API. This new ads placement will be available on all current Marketing API versions, and does not require an upgrade. "With this new addition, you will be able to update your app to enable your clients to create and preview ads in Instagram search results via API."

This advertising innovation comes at a crucial time for Meta, which has been struggling with weak advertising demand. The company reported declining ad sales in three consecutive quarters, but managed to slightly increase its ad revenue by around 4.1% in Q1 2023. To further stimulate ad revenue, Meta previously introduced two new ad slots on Instagram, as well as a new ad format for Facebook Reels, and began permitting advertisers to run ads on the Explore home page and profile feeds.

In conjunction with the announcement of ads in search results, Instagram also launched Reminder Ads. These ads make it easier for businesses to announce, remind, and notify users of upcoming events or product launches that may interest them. The goal of Reminder Ads is to build awareness and anticipation for future events and promotions. Users can choose to receive reminders in the form of three Instagram notifications: one the day before the event or launch, one 15 minutes before, and one at the time of the event or launch.

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