When Ads Are Coming to Instagram

by Christopher Freeburn | September 9, 2013 11:01 am

instagram When Ads Are Coming to Instagram[1]Within twelve months, Instagram users will see something they haven’t before[2]: advertising.

The move to include ads on the photo-sharing services comes as its parent Facebook (FB[3]) looks to make money on the company it paid $1 billion to acquire last year. The effort to introduce Instagram ads is being led by the unit’s Director of Business Operations Emily White, the Wall Street Journal notes.

White says the company is attempting to balance plans to generate revenue with a desire not to disrupt or alienate users.

Instagram has long been known for its clutter-free, easily accessible interface. It claims about 150 million users, up from 128 million last year.

The company has recently boosted its staff from 32 to 50, including four people tasked with laying the groundwork with advertisers.

White has met with a number of possible ad-buyers, including Coca-Cola (KO[4]), Ford (F[5]) and Williams-Sonoma (WSM[6]). Facebook said late last year that it was exploring ways to add advertising[7] to Instagram.

Last year, Instagram faced a user backlash after it changed its terms of service and was quickly forced to restore the earlier terms[8].

Shares of Facebook rose modestly in Monday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/04/instagram.png
  2. see something they haven’t before: http://online.wsj.com/article_email/SB10001424127887324577304579059230069305894-lMyQjAxMTAzMDAwODEwNDgyWj.html
  3. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  4. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  5. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F
  6. WSM: http://studio-5.financialcontent.com/investplace/quote?Symbol=WSM
  7. was exploring ways to add advertising: http://investorplace.com/ipo-playbook/facebook-confirms-instagram-ad-plans/
  8. was quickly forced to restore the earlier terms: http://investorplace.com/2012/12/instagram-reverts-to-old-ad-policy-amid-outcry/

Source URL: http://investorplace.com/2013/09/when-ads-are-coming-to-instagram/
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