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Facebook: Instagram to Get Ads as Part of Monetization Strategy

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Business Insider reports Facebook has confirmed ads are coming to Instagram, the popular photo sharing network it acquired in a $1 billion deal. The confirmation comes from Carolyn Everson, Vice President of Global Marketing Solutions at Facebook. She told BI ads are coming at their Ignition 2012 conference.

BI: Will you put ads in Instagram?

CE: Eventually we’ll figure out a way to monetize Instagram.

BI: How far are you away from figuring that out?

CE: Well, Instagram continues to grow incredibly fast and we’re still a very small team when you think about the amount of people they are reaching. There are many brands that use Instagram right now to try to get a feel for how to engage with their followers. We will definitely be figuring out a monetization strategy. When that will happen, I can’t comment, but it’s going to happen.

This isn’t surprising news by any means; when you acquire a company in a billion dollar deal, you should at least try to make money some how right? Now, all of those users and photos are ripe for monetization.

Instagram started out for iOS users only but is also now available to Android users. It has remained ad-free, which has been an integral part of the photo sharing and viewing experience.

This July, Instagram announced it had pass 80 million users and over 4 billion photos shared. Just yesterday, one of the most significant updates was released for its iOS app.

My guess would we probably might see sponsored images or pages appearing within Instagram timelines, similar to what we’re already seeing on Facebook.

Would ads stop you from using Instagram?

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • BrodieTheDog

    That sucks. That’s going to kill this nice cleanly laid out appearance of this app. Time to start looking at alternitivs to Instagram.

  • http://twitter.com/Chrome262 Chrome262

    hell at this point what app doesn’t have filters and photo abilities Instagram would of gone the way of 4Square (yes I know its still around but its useless) if it wasn’t for FB.

  • Mark

    I’m already done with Instagram because of its recent reduced capability with twitter. I predict that it’s going to lose ground rapidly, especially with twitter and flickr (today) offering improved social photo integration.

  • http://www.ryantoyota.com/ Ryan

    What the hell? She didn’t say Instagram was getting ads. She said they were going to figure out a way to monetize it. She said nothing about that strategy including ads.

    Granted, ads are the most likely form of monetization, yes, but I think what she meant by “eventually we’ll figure it out” is that they’re probably trying hard to monetize it in a way that doesn’t require ads, at least not in the traditional sense, and that’s why nothing has been revealed yet.

    Bottom line is, Facebook hasn’t confirmed anything here. All they’ve confirmed is that they’re trying to figure out how to monetize something they paid $1 billion for. OF COURSE they’re trying to figure it out. If they weren’t trying to figure it out, they should probably have themselves committed! This isn’t news, this is something anyone with common sense could have guessed.

    It sickens me how reporters will take a statement like this, apply their own perception to it, and then claim it as fact.

    (By the way Gary, I realize this wasn’t you claiming this fact, it was the source, but it’s still false and misleading in my opinion.)

  • http://www.ryantoyota.com/ Ryan

    They’re not just going to slap banner ads across the bottom of the app, if that’s what you’re thinking. If that was their plan, they would have done it already.

    They’ll likely try and come up with a way to slip in “promoted” posts that look like they belong in the feed similar to what they’ve been doing lately in the Facebook iOS app.

  • http://www.ryantoyota.com/ Ryan

    Actually, come to think about it, the shocking headline that should be at the top of this article should be “Facebook Still Hasn’t Figured Out How To Monetize Instagram!” That’s the surprising thing that I can’t believe. How do you spend a billion dollars on something that you haven’t figured out how to turn a profit with?

  • A D

    Swoosh…