Stukent Marketing Certification Practice Test

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Which statement is true regarding Instagram's advertising features?

Instagram introduced "Sponsored photos/videos" to reduce competition.
Instagram unveiled "Sponsored photos/videos" to increase revenue for Facebook.
Instagram does not offer any advertisement options for businesses.
Instagram's advertising is exclusively in video format.

The correct answer is: Instagram unveiled "Sponsored photos/videos" to increase revenue for Facebook.

The statement that Instagram unveiled "Sponsored photos/videos" to increase revenue for Facebook is accurate because Instagram, as a platform owned by Facebook, was developed with the goal of generating additional revenue streams for its parent company. This feature allows businesses to promote their content directly within users' feeds, leveraging Instagram's vast user base and engagement levels. By enabling advertising, Instagram not only provides brands with a means to reach their audience but also helps Facebook enhance its advertising revenue, maximizing profitability across its services. In contrast, the other statements do not accurately reflect Instagram's advertising strategies or capabilities. Instagram's focus is on integrating advertising into the user experience rather than reducing competition. Additionally, the platform does indeed offer various advertisement options for businesses, contrary to the claim that it does not. Lastly, advertising on Instagram encompasses both image and video formats, allowing businesses to utilize diverse content types for their campaigns, rather than being limited to video alone.