Earlier this summer Facebook announced ads would be launching on Instagram for Canadian users and that day has finally arrived.
Today marks the start of ’sponsored’ ads set to hit your Instagram stream from the first five advertisers chosen by the social network: Hudson’s Bay Co., Target Canada, Sport Chek, Air Canada, and Travel Alberta. Instagram is already in talks with a second round of advertisers set to kick off campaigns in the next couple months, reports the Globe and Mail.
Ads will display a ‘sponsored’ label, similar to what American users have seen since last fall, like this Levis ad below:
Frederick Lecoq, senior vice-president of marketing for FGL Sports (the division of Canadian Tire that includes Sport Chek) says the opportunity to advertise on Instagram is not to push individual products, but rather to help build the company’s brand:
“When you look at the consumer-decision journey, there’s two steps … there’s the shopping trigger and the purchasing trigger,” Mr. Lecoq said. “In the past, most of the time, the shopping trigger was TV ads. I think that’s where Instagram is going to play.”
Sponsored ads allow advertisers to reach users that do not follow them, plus reach a highly connected mobile audience. Facebook stated last year its goal for Instagram ads is to create classy ads, noting “We want someone to feel like they’re flipping through their favourite glossy magazine.”
Ads are also set to launch for Instagram users in the U.K. and Australia as well. Personally, if an Instagram sponsored ad is clever or actually looks interesting, I’m not going to throw a hissy fit over it. Remember, when you’re using a service that’s free—you’re the product.
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“…when you’re using a service that’s free—you’re the product.”
If you’re trying to be profound, I think you failed, because that makes no sense.
Why does it not make any sense? Do I need to put on my “AI” hat and spell it out for you in a calm and clear manner? 😛
Yup. Tell me how I am a product.
When a service is free, users are the product as you help Facebook make money with your data and time spent on their site. Any app or service that launches for free relies on user data and the user to make money.
Oh my goodness Gary… That does NOT make the user the “product”. Your analysis is a stretch at best. The acquisition of statistics does not make the source of the statistics, the product. The closest analogy would be like trying to say a plant that manufactures toy cars is a product. It isn’t, of course… It’s the produced result that is the product.
So how do you see Facebook then? What is Facebook without all of their users? What about a service like Gmail, serving you tailored ads?
The answer to both questions is… We are the “consumer”. We consume the information, services and ads. Facebook and Gmail are the products. Because they are “free” does not make them any less a “product”.
Seek out a marketing professional and have them explain it to you. Or, do what I did, and study marketing in college. But the best advice is to not presume to understand things to which you have no practical knowledge.
Oh noes, AI has a marketing diploma from college, I better run for the hills! 😛
Real mature.
One more app to add to the refuse pile. I don’t think I have ever bought anything due to advertising in a mobile app.
Oh I had that since last week. I was like “WTH is this user,” until I saw the “Sponsored” moniker. Then I was like “Damn! This has Facebook written all over it!”