Instagram Grows With Ads on the Horizon

Instagram usage is 150m monthly

Instagram, the photo and video sharing social network, hit 150M monthly active users over the weekend, once again proving that the billion dollar acquisition of the app was well worth the cost to their parent company, Facebook.

Only 2 months after introducing video for Instagram, monthly usage continued to grow with 16 billion photos shared and 2 billion likes per day! 55 million photos are created each day by Instagrammers.

With such a robust usage, advertisers are confidently asserting the value of the platform for brand activity such as connecting with key target demos and validating user generated content. Many have wondered since the acquisition by Facebook when the analytics and ad options would role out and now Emily White, Instagram’s director of business is sounding off. In a quote to The Wall Street Journal, White states  “We want to make money in the long term, but we don’t have any short-term pressure,” sparking rumours of ad options coming in 2014.

The implementation of ads is good for brands and questionable for user experience. Ad targeting segmentation will be very interesting as more than 60% of the active monthly users reside outside of the US. Whether usage will drop off once ads are launched is TBD, as the uproar produced by Instagram acquisition did not result in usage decreases. Ultimately, ads offerings will attract more brands, which means more unique content on the platform and additional benefits that brands bring to social media platforms such as customer service, giveaways, contests, and exclusive access to content.






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