Facebook is looking to expand its advertising capabilities further. The social networking giant will soon start testing ads on its viral video app, Instagram Reels. Reuters reports that the ad testing spree will target users in India, Brazil, Germany, and Australia, where Instagram Reels has gained popularity.Airing ads on Instagram Reels affirms Facebook's (FB) push to profit from growing short-video popularity. It also indicates how strong the momentum is for Instagram Reels. The banning of TikTok in India has presented a unique opportunity for the company to secure a larger share of the pie.According to Reuters, the company intends to test other features as part of an increased focus on the Indian market. For instance, it is contemplating letting creators in India share reels’ videos on their Facebook accounts.The social media behemoth has already confirmed it will let advertisers select categories of content where they would like to place their ads. According to the Reuters report, advertisers could be allowed to place their ads along with children and parenting videos, and animal and fitness content.Facebook shares are up 8% year to date after a 33% pop in 2020. (See Facebook stock analysis on TipRanks).Facebook will also begin testing sticker ads on Facebook Stories. Brands will be able to create sticker ads that can be placed on creators' Stories.Facebook's push to expand its advertising empire has caught the attention of Jefferies’ analyst Brent Thill. While the company is expected to post 34% year-over-year revenue growth, the forecast might be ‘too conservative' according to the analyst.With Social ad spend expected to remain ‘robust,’ Thill has reiterated a Buy rating on Facebook with a $360 price target. This implies 10% upside potential to current levels.Consensus among Wall Street analysts is that Facebook is a Strong Buy based on 30 Buy and 4 Hold ratings. The average analyst price target of $345.13 implies 16.4% upside potential to current trading levels.According to the TipRanks’ Smart Score system, FB scores a 7 out of 10, indicating that it is likely to outperform the overall market.Related News
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