Instagram’s CEO Adam Mosseri on Balancing Creators and Advertisers

Ever opened Instagram just to watch a couple of reels, but ended up scrolling for hours? Somewhere between the cat videos, DIY hacks, and dance challenges, you probably came across a few ads. That’s exactly what Gram is doing. Ads are everywhere, and they’re funding your favorite creators.

There’s a thin line between keeping creators happy and making advertisers feel they’re getting their money’s worth. At the center of this balancing act? Adam Mosseri, Instagram’s CEO, is the man steering this billion-dollar ship.

In a recent conversation, Mosseri opened up about the tightrope walk between creators and advertisers. His goal? Keep creators creating and advertisers advertising without ruining your feed. Easier said than done, right? But let’s break down how he’s tackling this challenge.

Creators vs. Advertisers

Instagram started as a photo-sharing app back in 2010, but today? It’s a full-on content ecosystem. Influencers, artists, and everyday users flood the platform with reels, memes, and stories. While you enjoy their content, advertisers see an opportunity, your eyeballs. And that’s where the conflict kicks in.

On the flip side, advertisers see Instagram as prime real estate to promote their products. And they’re willing to pay big bucks for it. In fact, advertising accounts for 97% of Instagram’s revenue. That means ads are a crucial part of Instagram’s business model.

But here’s the catch. Too many ads can ruin the user experience and nobody wants to scroll through a feed that feels more like a catalog than a social space. It’s a constant push and pull between keeping the platform engaging and generating revenue.

How Mosseri is Keeping Creators in the Game

Creators are the lifeblood of Instagram. They’re the ones driving engagement, attracting followers, and building communities that keep users coming back. Mosseri and his team have rolled out several tools to make creators stay happy and motivated

1. Monetization Tools

Instagram helps creators with monetization tools like Paid Subscriptions for exclusive content, Branded Partnerships for sponsored posts, and Shopping Features to earn from product sales.

2. Creator Marketplace

This new feature connects brands with influencers for collaborations. Instead of creators hunting for deals, brands can now approach them directly. It’s a smooth way for both parties to benefit.

3. Advanced Analytics

Instagram is also providing creators with deeper insights into their audience. This helps them understand what’s working, what’s not, and how to tweak their content for better engagement.

What About Advertisers?

While creators bring in the content, advertisers bring in the money. Mosseri’s message to advertisers? “We need to keep the platform fun and engaging, or people will leave. And if they leave, your ads won’t matter.” He’s betting on a less is more approach, where quality ads outperform quantity.

1. AI-Driven Ad Placements

Instagram is using artificial intelligence to place ads in a way that feels natural and less intrusive. The goal? Show users ads they actually interested in, without disrupting their experience.

2. Immersive Ad Formats

Instagram is experimenting with new ad formats that grab attention without annoying users, from augmented reality (AR) ads to interactive polls and quizzes.

3. Transparency and Metrics

Advertisers want data, and Instagram is giving it to them. Detailed metrics on reach, engagement, and conversions help brands measure the effectiveness of their campaigns.

What’s Next for Instagram?

As social media evolves, so do the expectations. Users want content, creators want income, and advertisers want results. Mosseri is focused on building a platform where all three coexist without compromising user experience. Instagram is already exploring new features like

Enhanced AI for personalized content curation

Expanding the Creator Marketplace to include more niche creators

Adding more immersive ad formats that blend into the user experience

And it’s paying off. In 2023, Instagram’s monthly active users crossed the 2 billion mark, showing no signs of slowing down. But the big question is, Can Instagram keep everyone happy?

Balancing for the Win

At the end of the day, Adam Mosseri isn’t just running a social media app—he’s running a digital economy. Every post, reel, and ad is part of a larger ecosystem where users, creators, and advertisers all play a role.

His job is to keep that ecosystem in balance. Too many ads? Users leave. Not enough monetization? Creators leave. Poor ROI? Advertisers leave. It’s a constant juggling act, but Mosseri is confident that with the right strategies, Instagram can keep everyone happy.

So, the next time you scroll past a reel, pause for a second. There’s a strategy behind that ad, and Mosseri is making sure it doesn’t mess with your vibe.