Feed & Stories Ads on Facebook and Instagram: What You Need to Know

You're scrolling through Instagram, and between posts from friends, you see an ad for running shoes. You swipe to Stories, and a full screen ad for a local cafe appears. These are Feed and Stories Ads, the two most common ad formats on Meta's platforms (Facebook and Instagram).

For New Zealand businesses, Feed and Stories Ads represent the primary way to reach customers on social media. Unlike Google Ads where people are actively searching, Meta Ads reach people while they're browsing, socialising, and discovering content. This creates different opportunities and requires different strategies.

In 2026, Meta has significantly refined how Feed and Stories Ads work. The platform now uses sophisticated AI to predict which creative formats will resonate with different audiences, automatically adjusts ad delivery based on real time performance, and optimises for specific business outcomes like purchases or leads. For Kiwi businesses looking to build brand awareness and drive sales through social media, understanding when and how to use Feed versus Stories Ads is essential.

What are Feed Ads exactly?

Feed Ads appear directly in users' Facebook or Instagram feeds, mixed in with organic posts from friends, family, and pages they follow. They look similar to regular posts but include a "Sponsored" label and call to action button.

On Facebook, Feed Ads appear in the main News Feed on both desktop and mobile. On Instagram, they appear in the main feed as users scroll through photos and videos. The format blends seamlessly with organic content, which is both an advantage (less disruptive) and a challenge (easier to scroll past).

Feed Ads support various content types. Single image ads work well for simple, clear messages. Video ads capture attention through movement and storytelling. Carousel ads (covered in another post) let you showcase multiple products or images. Each format serves different marketing goals.

The key advantage of Feed Ads is familiarity. Users are accustomed to consuming content in their feeds. Well designed Feed Ads feel like natural content rather than intrusive advertisements. This makes them effective for both brand awareness and direct response campaigns.

What are Stories Ads and how do they differ?

Stories Ads appear between organic Stories from people and pages users follow. They're full screen, vertical format ads that appear for a few seconds before users can swipe to the next Story.

Stories Ads exist on both Facebook and Instagram Stories, though Instagram Stories typically drive better engagement for most businesses. The full screen format is immersive, commanding complete attention without competing elements on the screen.

Stories Ads are designed for mobile. The vertical 9:16 aspect ratio fills smartphone screens completely. This makes them particularly effective for mobile first audiences, which in New Zealand means most people under 45.

The ephemeral nature of Stories (they feel temporary and casual) changes how people engage with them. Users are more likely to tap through, swipe up, or interact with Stories Ads compared to Feed Ads because the format encourages quick actions.

Stories Ads disappear quickly, so your message needs immediate impact. You have roughly 3 to 5 seconds to capture attention before someone swipes away. This requires punchy visuals, minimal text, and clear calls to action.

When should NZ businesses use Feed Ads?

Feed Ads work best for specific marketing objectives where their format provides advantages.

Use Feed Ads when you want to tell a story. The feed format allows for longer captions, detailed descriptions, and multiple images through carousels. If your product or service needs explanation, Feed Ads give you space to provide context.

Feed Ads work well for reaching older demographics. While younger users heavily favour Stories, users over 40 tend to engage more with Feed content. If your target audience skews older, prioritise Feed placement.

They're excellent for detailed product showcases. Ecommerce businesses can display products clearly, include prices in the image, and provide detailed descriptions in the caption. The format supports shopping tags that let users purchase directly.

Feed Ads drive good website traffic. The "Learn More" or "Shop Now" buttons encourage clicks through to your website where users can browse at their leisure. For businesses whose conversion happens on their website rather than impulsively, Feed Ads work well.

Use Feed Ads for retargeting (covered in another post). People who've already shown interest in your brand often prefer the less aggressive feel of Feed Ads compared to the more disruptive Stories format.

They're effective for building community. Feed Ads support comments, likes, and shares. Social proof accumulates on the ad itself, with visible engagement metrics that can boost credibility.

When should NZ businesses use Stories Ads?

Stories Ads excel in different scenarios where their unique format provides advantages.

Use Stories Ads when you need immediate attention. The full screen takeover format is impossible to ignore. For time sensitive offers or announcements, Stories Ads ensure your message dominates the screen.

Stories Ads work brilliantly for mobile app installs. The swipe up action (now tap and hold in 2026) flows naturally into app store downloads. Mobile first businesses see strong performance from Stories placements.

They're perfect for video content. The vertical format is ideal for mobile video consumption. Product demos, behind the scenes content, or user generated content performs exceptionally well in Stories.

Stories Ads drive impulse actions. The format encourages quick decisions. Flash sales, limited time offers, or impulse purchase products convert well through Stories because users are in a quick browsing mindset.

Use Stories Ads for younger demographics. Instagram users under 35 spend more time in Stories than Feed. If your target audience is Gen Z or younger Millennials, Stories placement is essential.

They're excellent for building urgency. The temporary feel of Stories (even though your ad isn't actually temporary) creates psychological urgency that encourages immediate action.

Stories Ads work well for local businesses. Location tags and swipe up actions to get directions make Stories ideal for driving foot traffic to physical stores.

How do you create effective Feed Ads?

Creating Feed Ads that stop the scroll requires understanding what works in this format.

Start with eye catching visuals. Users scroll quickly through feeds. Your image or video needs to stand out immediately. Use bold colours, interesting compositions, or unexpected visuals that break the pattern of typical feed content.

Keep text on images minimal. Facebook and Instagram used to penalise ads with too much text on images. While that's less strict in 2026, images with minimal text still perform better. Let your visual speak for itself.

Write compelling captions. Unlike Stories, Feed Ads support longer captions. Use the first line to hook attention (it's all that shows before "see more"), then provide value, benefits, or storytelling in the expanded text.

Include clear calls to action. The button ("Shop Now," "Learn More," "Sign Up") tells people exactly what to do. Match the CTA to your goal. Sending people to browse? Use "Learn More." Ready for purchase? Use "Shop Now."

Test square versus vertical formats. Feed Ads support multiple aspect ratios. Square (1:1) takes up more screen space on mobile, increasing visibility. Test which performs better for your audience.

Use captions and subtitles for video. Most people watch Feed videos without sound initially. Captions ensure your message lands even in silent viewing.

Showcase social proof when possible. If your ad accumulates engagement (likes, comments, shares), that social proof encourages others to engage too. Strong creative generates organic engagement that boosts performance.

How do you create effective Stories Ads?

Stories Ads require different creative approaches because of their unique format and user behaviour.

Design for full screen vertical format. Stories are 9:16 aspect ratio. Don't repurpose horizontal content, it will have black bars top and bottom. Create content specifically for vertical viewing.

Capture attention in the first second. Users swipe through Stories quickly. Your opening frame needs immediate visual impact. Movement, bold text, or surprising imagery stops the swipe.

Keep messaging simple and clear. You have 3 to 5 seconds before someone swipes away. One clear message per Story Ad. "50% off this weekend" is better than trying to explain your entire product range.

Use motion and animation. Static images perform worse in Stories than movement. Even simple animations, text reveals, or video content drives better engagement than still photos.

Place calls to action prominently. Stories Ads support swipe up actions (tap in 2026) and interactive stickers. Make it obvious what you want viewers to do. Large "Swipe Up" text or obvious tap indicators improve conversion.

Sound matters in Stories. Unlike Feed where most watch silently, many users have sound on for Stories. Background music, voiceover, or audio effects can enhance your message.

Test user generated content. Stories feel personal and casual. Professional, polished ads sometimes feel out of place. Authentic, user generated style content often outperforms overly produced creative.

Use Story specific features. Polls, questions, countdowns, and other interactive elements drive engagement. While not all are available in paid ads, those that are can significantly boost performance.

What about Feed versus Stories performance metrics?

Understanding how each placement typically performs helps set realistic expectations.

Feed Ads generally have lower cost per thousand impressions (CPM) than Stories. More inventory exists in Feed placement, so competition is slightly less intense. In New Zealand, Feed CPMs typically range from $5 to $15 depending on targeting.

Stories Ads typically drive higher engagement rates. The full screen format and mobile optimisation leads to more swipes, taps, and actions per impression. Engagement rates 20 to 40% higher than Feed are common.

Feed Ads often drive longer session times. People who click through from Feed Ads tend to spend more time on your website browsing multiple pages. Stories Ads drive more impulse clicks but shorter sessions.

Stories Ads excel at driving direct actions. App installs, sign ups, and quick purchases convert well from Stories. Feed Ads work better when conversion requires more consideration.

Retargeting performs well in both placements. People who've already shown interest convert similarly across Feed and Stories. Test both and let performance guide budget allocation.

The best approach for most NZ businesses is running ads in both placements and letting Meta's algorithm optimise delivery. Start with both enabled, gather data, then adjust if one dramatically outperforms.

Should you run Feed only, Stories only, or both?

The answer depends on your goals, audience, and creative resources.

Run both placements when you want maximum reach. Meta's algorithm will automatically show your ads where they're most likely to perform. This is the default recommendation for most campaigns.

Run Feed only when targeting older demographics (45+) or when your message requires detailed explanation. Feed's format better serves complex products or services.

Run Stories only when targeting younger demographics (under 35) or when driving mobile specific actions like app installs. Stories dominate younger user attention.

Consider creative requirements. If you only have horizontal images or videos, Feed placement works. If you have vertical mobile first content, Stories works. Creating separate creative for each placement yields best results but requires more resources.

Test and optimise. Start with both placements, track which drives better results for your specific goals, then adjust budget allocation accordingly. What works for one business might not work for another.

In 2026, Meta's Advantage+ placements let the algorithm automatically distribute your budget across Feed, Stories, Reels, and other placements based on performance. For most businesses without extensive testing resources, this automated approach works well.

Ready to launch your Feed and Stories Ads?

Feed and Stories Ads offer New Zealand businesses powerful ways to reach customers on Facebook and Instagram. Whether you're building brand awareness, driving website traffic, or generating direct sales, understanding when and how to use each placement maximises your Meta Ads performance.

Success comes down to creating platform native content that respects how users engage with each format. Feed Ads that feel like natural content. Stories Ads that command full screen attention and drive immediate action. The businesses winning with Meta Ads in 2026 aren't just repurposing the same creative everywhere. They're crafting format specific content that works with user behaviour.

Book a free discovery session with Bump Digital and we'll show you exactly how Feed and Stories Ads could work for your business. We'll review your current creative, identify opportunities for better performance, and give you a clear strategy, whether you work with us or not. No sales pitch, just practical advice from a team that manages Meta Ads for NZ businesses every day.

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