Content Marketing Blog

Instagram plans to introduce advertising within the next year

Instagram is planning to introduce advertising within the next year, a step many other social media platforms have already chosen to take.

In a recent interview with The Wall Street Journal, Instagram’s Director of Business Operations Emily White said she is currently in the process of establishing a solid foundation for advertising, and will be looking into selling advertising spaces over the next year.

The social networking site is reported to have 150 million active users, a rise of 128 million since Facebook acquired the company last year.

As of yet, the free photo-sharing app has no advertising and no source of income, but due to its immense popularity, Instagram has enormous potential for financial value. However, it is taking its time.

“We want to make money in the long term, but we don’t have any short-term pressure,” Ms White told The Wall Street Journal.

Ms White fears advertising could clutter the service, and considering that Instagram is incredibly popular with a younger audience, advertising could also alienate its users.

Instagram’s parent company Facebook is planning to introduce video advertisements later this year. These 15-second videos are reported to cost up to $2.5 million dollars, according to a recent article published by Bloomberg.

Facebook’s Chief Operating Officer Sheryl Sandberg told Bloomberg that in the US, between 88 and 100 million Facebook users log on every night during prime-time TV hours.

Social media marketing and digital advertising have become incredibly profitable in recent years, so there is little wonder why Instagram is planning to introduce this form of revenue.

In this year’s second quarter, Facebook made a total of $1.6 billion in ads, and popular video-sharing site YouTube is expected to make $4 billion this year, according to Mashable, which looked in depth into a Morgan Stanley report.

These new advertising plans for Instagram can help companies gain more followers and drive campaigns, so it may be a good idea to keep an eye out for future developments.

Posted by Dylan Brown