Instagram Stories, launched last August, is used by 150 million users every day, the firm announced, as it introduced new ad options for the service.

Noting that one-third of the most viewed stories are produced by businesses, the app maker said it now be possible to run “immersive” full screen ads in stories, using targeting, reach and measurement capabilities to make them personally relevant.

The ads will first be tested with more than 30 firms, including Maybelline New York, Nike, Netflix and Qantas.

Also being introduced is Stories Insights, which will enable businesses to see the reach, impressions, replies and exits for individual stories.

Stories lets users share photos and videos with a 24 hour life span in a slideshow format.

Unlike Snapchat’s rival Discover feature, used by a limited number of media partners who create unique content on a daily basis, any media company can set up an Instagram Stories account.

According to The Wall Street Journal, while Snapchat’s partners get a cut of the ad revenue generated on their Discover channels, publishers will not get any revenue from Instagram Stories, at least for the time being.

Meanwhile parent Facebook has started testing mid-roll ads in videos, and the report said Instagram may do the same soon.

Instagram now has 600 million users, with 70 per cent following at least one business.