Is 2015 Instagram Year?
On 9th of September 2015 Instagram has introduced its worldwide Advertising service to the public. The service is available to all companies ranging from small to large ones. The Advertising service has been in testing phase for the past 2 years.
The Advertisement service works as self-service platform and any company can create the advertisement using the Facebook’s selve-serve platform, Power Editor or easily though Instagram’s Ads API system which is a software, that helps the advertisements to be automatically created (Business.instagram.com, 2015).
Instagram offers easy to follow manual with tips how to create the content which will fit the platform and make users love it rather than hate it. The Ads work on the same Ad Auction system same as Facebook, which selects the best suitable Ads based on the maximum bids and Ad performance. Since Facebook is a parent company of Instagram, Instagram also has access to targeting tools which Facebook already has in use, which helps Instagram since a lot of capital is saved and marketers know what quality of targeting to expect. The short time span within which Instagram managed to enter the Online Ad market was this fast mostly to the boost which it gained from Facebook (Sloane, 2015).
The main 3 types of new advertisement on Instagram Image Ads, Video Ads (30 seconds) and Carousel Ads consisting of multiple pictures. The types of advertising are shown in the picture below (Constine, 2015).
“There are 2 million advertisers on Facebook today—that’s the size and scale we’re looking at. Plus expanding from eight markets to 30 and then global, that gives you a sense of the broadening of availability.” said James Quarles, Instagram’s global head of business and brand development (Boorstin, 2015).
According to eMarketer research, Instagram will generate almost $600 million in ad sales this year 2015. It also predicts that Instagram will earn $2.81 billion in ad sales by 2017, which would make them overrun Google and Twitter in U.S. display ads (Sloane, 2015).
Secondly on 22nd of September 2015 Instagram has reached 400 million users. The increase from 300 million to 400 million happened only within 9 months. Instagram is at the moment having more users then Twitter, which has lastly reported 316 million users (Olanoff, 2015).
Instagram offers a guide in which the companies can customise their advertisement in a way that they blend with the rest of users content and user is not disturb by the sponsored posts. When Instagram first introduced the sponsored images, there was a clear disagreement from the users who didn’t welcome posts from brands they weren’t following (Sloane, 2015).
The increase of numbers of users clearly shows that people did not start leaving the platform after the Instagram Ads have been introduced as the first waves of reactions were hinting.
Do you think that the fact that Instagram will overrun Google in advertising revenue is feasible in the near future? Further do you think that this is the right way which Instagram should lead themselves and following and implementing what Facebook is doing or will it lead to customer loss?
Author: Natalie Jonasova
Boorstin, J. (2015). Finally! Here comes Instagram’s big ad push. [online] CNBC. Available at: http://www.cnbc.com/2015/09/08/finally-here-comes-instagrams-big-ad-push.html [Accessed 27 Sep. 2015].
Business.instagram.com, (2015). Instagram Business. [online] Available at: https://business.instagram.com/advertising/ [Accessed 28 Sep. 2015].
Constine, J. (2015). Instagram Ads Go Global, Including New 30-SecondÂ Commercials. [online] TechCrunch. Available at: http://techcrunch.com/2015/09/08/all-grown-up-and-ready-to-make-money/#.ziat7a:e8eu [Accessed 26 Sep. 2015].
Olanoff, D. (2015). Instagram Hits 400M Users Just 9 Months After AnnouncingÂ 300M. [online] TechCrunch. Available at: http://techcrunch.com/2015/09/22/instagram-hits-400m-users-just-nine-months-after-announcing-300m/ [Accessed 28 Sep. 2015].
Sloane, G. (2015). Instagram Unleashes a Fully Operational Ad Business. [online] AdWeek. Available at: http://www.adweek.com/news/technology/instagram-just-unleashed-fully-operational-ad-business-165117 [Accessed 27 Sep. 2015].
Sloane, G. (2015). Instagram’s Ad Sales Are Expected to Top $2 Billion by 2017. [online] AdWeek. Available at: http://www.adweek.com/news/technology/instagrams-ad-sales-are-projected-more-2-billion-2017-166111 [Accessed 27 Sep. 2015].