Monday, September 9, 2013

[TECH TALK]: You Can Thank Facebook For Instagram Ads Feeds In 2014


When Facebook purchased photo-sharing site Instagram for a whopping $1 billion in April 2o12, there were concerns raised about how profitable the acquisition would be. With prime, currently ad-free Internet real estate, the company is currently developing plans to place advertisements onto the site's feeds – following a successful strategy of its parent company.

The Wall Street Journal profiled Instagram's Director of Business Operations, Emily White, and highlighted her pitch to the site's Chief Executive Kevin Systrom regarding maximizing the popular app's revenue potential back in March.

Although Google and Facebook have stacked large amounts of cash via their respective online ad revenue streams, Instagram's appeal was the simplicity of the layout coupled with ease of use – and perhaps the lack of companies hawking their wares at every click.

"We want to make money in the long term, but we don't have any short-term pressure," she told the Journal. That pressure, analysts say, come at the risk of losing many of its 150 million users if they decide to place ads. However, online marketers agree that because of the demographic Instagram serves, it makes perfect sense the site should be one of the major cash cows of the tech world.

Ms. White is aware of the challenge, after witnessing Facebook struggle with new products and advertising. She's sat with some of the company's top ad executives ahead of launching her plans, and hopes her dialed-down strategy connects with users. "I'm always looking at how to keep it simple," she added.

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