Instagram To Debut Ads ‘Within The Next Year’


Ads On Instagram

As Instagram reaches the 150 million users mark the team at Facebook is preparing to launch in-app ads for monetization.

Instagram has increased its user base by 15% over the last two month and now a report from the Wall Street Journal says Facebook wan’t to monetize “within the next year.”

Facebook doesn’t monetize Instagram at this time. There are no premium features, no stickers for sale, nothing.

During the company’s Q2 2013 earnings conference call CEO Mark Zuckerberg discussed explained how Instagram might be monetized:

Kevin Systrom has always been clear that we’re building Instagram to be a business. We expect over time to generate a lot of profit from it. We think the right focus for now is to continue increasing the footprint of Instagram and, when the right time comes, we’ll think about advertising.

The transition to an ad-based platform is being handled by Emily White, the company’s Chief Operating Officer.

So how will Instagram be monetized? According to the Wall Street Journal’s report:

Ms. White’s team is looking at the possibilities around the app’s Discover feature, which promotes popular content, as well the search function, which allows users to look up images or themes. Ms. White said some retailers also are interested in ad products that will allow users to click on pictures of products that link to a retailer’s own site. But she expressed reservations about such a system because many mobile websites need improvement.

Just like every other change Facebook has introduced to its platforms the addition of paid ads will likely force a certain level of disgust from Instagram users who hope find magical platforms that are profitable without any means for profitability.


James Kosur

James Kosur has worked in the new media space for the last 10 years, helping many publications build their audiences to millions of monthly readers. He currently serves as the Director of Business Development at Business2Community.com and the CEO of Aven Enterprises LLC.

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