Instagram goes big on ads

Get ready for more ads in your feed.

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Get ready for even more ads in your feed.


Instagram is making it easy for any company to pitch its products next to filtered photos of sunsets and celebrity selfies. Previously only open to a select group of brands in the U.S., as of September 30, any company in 30 countries can advertise on the platform with a “self-serve” option.


The announcement on Wednesday comes as Instagram’s parent company, Facebook  FB 1.44% , is facing increasing pressure from investors about making money from its big acquisitions. Although Instagram’s $1 billion price tag makes it cheaper than Facebook’s other splashy deals, Facebook has owned Instagram longer. Instagram’s transformation into a business will set the tone for how those other acquisitions — $2 billion Oculus VR and $19 billion WhatsApp — will make money.


With Instagram’s advertising kicking into high gear, analysts at Kenshoo, a marketing software company, predict the social network could make as much as $1 billion in annual revenue in the next three to four years. It would be enough to make a difference in Facebook’s $12.4 billion in annual revenue. Emarketer has predicted $595 million in ad revenue at Instagram this year alone.

See on Scoop.itten Hagen on Social Media


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