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Instagram Tests Stories Ads for Businesses 

Instagram business Stories ad with product tags
New Instagram Stories Ads feature for business accounts

Instagram announced it is testing Stories Ads designed specifically for business accounts, aiming to help brands drive higher engagement and more direct conversions. With Stories being one of the most popular content formats on Instagram, this feature has the potential to revolutionize how businesses connect with their audiences.

This update allows business accounts to craft immersive, full-screen Stories ads that blend seamlessly into user experiences—now with added tools for call-to-actions (CTAs), link clicks, and product tags. For brands looking to increase visibility and conversions, this marks a major opportunity to optimize reach in a space users already love.

What Are Instagram Stories Ads for Businesses?

Instagram Stories Ads for businesses are short, vertical video or image-based ads shown between users’ organic Stories. These test ads include:

  • Product Tags: Businesses can directly tag products, making them instantly shoppable.

  • Custom CTAs: From “Shop Now” to “Learn More”, brands can customize their CTAs based on campaign goals.

  • Swipe-Up and Link Stickers: The return of easy redirection tools helps drive traffic to landing pages or product listings.

  • Insights Dashboard: Real-time performance metrics such as reach, tap-through rate, exits, and conversions.

This test is initially being rolled out to select business profiles globally, with broader access expected in the coming months.

Why This Matters for Marketers

Instagram Stories already boast over 500 million daily users, with a large chunk engaging with brand content. By enabling businesses to advertise within Stories using enhanced features, Instagram is providing:

  • A high-engagement environment: Stories are consumed quickly, allowing brands to deliver fast-impact messages.

  • Seamless product integration: Interactive elements like product tags and swipe-ups reduce friction in the buyer journey.

  • Mobile-first experience: Tailored for mobile screens, these ads are intuitive and non-disruptive to users.

Early testers have reported improved ad recall rates and click-through rates (CTR) compared to standard feed ads.

Use Cases Across Industries

Instagram Stories Ads for businesses can be a game-changer across sectors:

  • E-Commerce: Promote flash sales, new arrivals, or limited-edition drops using time-sensitive stories.

  • Hospitality: Showcase behind-the-scenes hotel views, restaurant ambiance, or limited-time offers.

  • Fashion & Beauty: Use tutorials, quick styling tips, or influencer takeovers to boost product visibility.

  • Education & Services: Share testimonials, tips, or free resource links with actionable CTAs.

These ad formats cater especially to Gen Z and Millennials, who are heavily invested in visual, short-form content.

Tips to Maximize Results with Stories Ads

To get the most from this new feature, brands should:

  1. Keep it Visual: Use vibrant images and videos that catch attention in the first 3 seconds.

  2. Leverage Sound: Add music or voiceovers to create immersive experiences.

  3. Incorporate CTAs: Always guide users to the next step—whether it’s clicking a link or swiping up.

  4. Use UGC and Influencers: Make content relatable and trustworthy by featuring real people.

  5. Test Frequently: A/B test different formats, captions, and CTAs for performance optimization.

With these best practices, brands can boost not just engagement, but actual conversions.

How This Aligns with Instagram’s Strategy

This test is part of Instagram’s broader strategy to support social commerce. Over the last year, Instagram has rolled out several features including in-app checkout, product tagging in Reels, and Shop tabs—and Stories Ads for businesses is the next natural evolution.

Instagram aims to make the platform a one-stop shop for discovery and purchase, allowing users to move from inspiration to action without ever leaving the app.

Conclusion

Instagram’s test of Stories Ads for businesses is a powerful step toward improving ad personalization and conversion rates. It enables brands to tap into the most dynamic part of the platform with advanced tools built for results. Want to harness the power of Instagram advertising for your business? Trust DIGILOGY to craft impactful, high-converting Instagram campaigns. Contact DIGILOGY today to get started with a tailored strategy that drives real results.

Digilogy

Digilogy is a full-service digital agency specializing in advertising, branding, creative services, web and app development, and e-commerce solutions. They blend creativity with technology to craft innovative, data-driven marketing strategies that elevate brands, boost engagement, and deliver measurable ROI. Their expertise spans SEO, social media marketing, PPC, content creation, and app development, tailored to diverse industries. Digilogy focuses on empowering businesses to thrive in a competitive digital landscape through customized, results-oriented solutions.

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