Instagram has released a sample of its upcoming ad format, integrated into a user’s photostream as a ‘Sponsored’ image, as the Facebook-owned photo app looks to turn its rising popularity into cash. The photo-sharing service said the ads will begin appearing in users’ feeds in the coming week and showed examples of what ads will […]
Instagram has released a sample of its upcoming ad format, integrated into a user’s photostream as a ‘Sponsored’ image, as the Facebook-owned photo app looks to turn its rising popularity into cash.
The photo-sharing service said the ads will begin appearing in users’ feeds in the coming week and showed examples of what ads will look like in a blog post.
The move marks the first time ads have appeared in Instagram feeds, which was acquired by Facebook in June 2010 for $1bn. Levi’s, Ben & Jerry’s, General Electric and PayPal are among the first advertisers to sign up to the format.
The ads look similar to regular Instagram posts, but in the top right corner a blue arrow icon and the word ‘sponsored’ will replace the old time-stamp.
If a user clciks on the ‘more’ button in there will be additional options to hide an ad or give feedback on why they didn’t like it.
The social network wrote in a blog post: “We want ads to be creative and engaging, so we’re starting with just a handful of brands that are already great members of the Instagram community. If you see an ad that doesn’t interest you, you can tap the “…” below it to hide it and provide feedback about what you didn’t like. This will help us show you more interesting ads in the future.”
The company previously explained the move was part of efforts by Facebook, which owns Instagram, to build the photo sharing website into a sustainable business.
“Our focus with every product we build is to make Instagram a place where people come to connect and be inspired,” Instagram said. “Building Instagram as a business will help us better serve the global—and ever growing—Instagram community, while maintaining the simplicity you know and love. As always, you own your own photos and videos. The introduction of advertising won’t change this.”
According to market research firm eMarketer, advertisers will spend $9.52 billion on social network ads worldwide this year – about 8.1 per cent of their overall digital ad budgets. These include revenues to Twitter, Facebook, LinkedIn and other social networks.
It estimates spending on mobile ads will increase 89 per cent globally this year to reach $8.8 billion, up from $4.02 billion last year.
Advertising on Instagram should help Facebook increase its lead in the mobile display advertising category, according to the research firm.
It estimates Facebook will account for a 33.3 per cent share of US mobile display ad revenues this year, up from a 21.1 per cent share last year.
Read the official Instagram blog announcement here
