Instagram has been tight lipped about how well financially its advertising program is doing, and a new study says it could earn up to $400 million this year.
Conducted by retail analytics company L2, the study analyzed the performance of nearly 250 brands on the social network.
Victoria’s Secret is the most followed brand with over 3.9 million followers, and despite not having an official account, Chanel has received around five million mentions with #chanel.
On the low end, L2 estimates that Instagram could generate $250 million in revenue for 2014, and here’s what founder Scott Galloway had to say:
“You can make the argument that this is the most powerful social media platform in the world right now.”
According to Olapic Co-Founder Pau Sabria, adding user generated photos to retail sites helped to increase sales five to seven percent, and increased average order value by two percent.
Last week, Instagram launched an official handbook for brands, which will also be highlighted on its blog.