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Chronicles

The story behind the story

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Facebook to start testing ads in Stories today in the US, Mexico, and Brazil, says Stories has 150M daily users, defines a user as anyone who watches one story

Josh Constine / TechCrunch :

TechCrunch Josh Constine

Context & Ripple Effects

The Instagram-to-Facebook Stories cross-posting feature from October 2017 had already been pumping the same ephemeral format across both apps; today's ad test is the monetization step that follows seeding. Facebook is starting in three of its largest ad markets — the US, Mexico, and Brazil — before any global rollout.

The 150M daily-user figure comes with a caveat Facebook states itself: a 'user' is anyone who watches a single story. That loose definition matters because the ad pitch is being sold against Snapchat on reach, and the corpus later shows Facebook scaling this exact playbook — combined Facebook and Messenger Stories hitting 300M DAUs by September 2018 with a global ad rollout.

First-order effects

  • Advertisers in the US, Mexico, and Brazil gain a new full-screen vertical ad inventory inside Facebook Stories, and Facebook's sales teams get a monetizable surface for a format it cloned rather than invented.
  • The 150M figure, counted as anyone who watches one story, gives Facebook's ad pitch a headline reach number that flatters the format against competitors reporting stricter daily-active-user definitions.

Second-order effects

  • Snapchat, whose entire business is the ephemeral camera format Facebook copied, faces ad-pricing pressure as Facebook sells Stories inventory at scale across three major markets.
  • Agencies and brands can now buy Stories placements on Facebook's self-serve tools alongside feed ads, shifting ephemeral-format ad budgets from a Snapchat-native buy to a Facebook-audience extension.

Third-order effects

The trend: Facebook is turning the Stories format into a family-wide monetization engine across Facebook, Messenger, and WhatsApp, applying scale and loose reach definitions to squeeze the format's originator, Snapchat.