Instagram Plans to Expand Advertising, Time to Generate More Revenue
Instagram is all set to beef up its money machine, any idea what that means? No, you do not have to pay for the service to use it in the future. It just means that you will be seeing more ads in your feed, well let me re-correct myself A Lot More.
Instagram announced on Tuesday that they plan on opening the website to all advertisers, yes that’s right. It means all kinds of marketers now have the opportunity to advertise themselves on the site be it Ben & Jerry’s or some random ice-cream mover.
Facebook bought Instagram back in 2012, that is why they have spent this much time on thinking their advertisement strategy instead of just jumping in. Marketers now have the opportunity to target the 300 million active users depending on their gender, age, interest and other factors.
The company is also introducing a click to buy option which will allow viewers to simply click on the advertised link to purchase the product or even install the app. New buttons like ‘Install Now,’ ‘Learn More,’ ‘Sign Up’ and ‘Shop Now’ are also being introduced. These buttons will link the users to external websites.
James Quarles, Instagram’s Business and Brand Development Global Head says that quality of the advertisement is the main focus here and the quality is what will set the company apart from others.
“The quality of the ad experience remains a very important point of differentiation for us.”
According to RBC Capital Markets, one of Wall Street’s firm, Instagram alone could bring around $1.3 billion to $2.1 billion revenues on table depending on how well the strategy works. Currently the picture sharing site works with Banana Republic, Levi’s and Ben & Jerry’s however it will soon be open for all kinds of marketers.