I just a four month time period Instagram has went from no revenue to a photo sharing platform that analysts are forecasting to generate between $250 and $400 million dollars in revenue this year.
Last Friday the company announced a big deal it signed with Omnicom. The deal was rumored to be worth as much as $100 million but it turned out being closer to $40 million. Either way this will turn out to be a lucrative year for Instagram as it transitions into a profitable company with no worries concerning growth.
Omnicom has clients such as Bud Light, Nissan, AT&T, and Pepsi that the company will market by leveraging its chunk of ad space on Instagram.
The photo-sharing app has asserted that they will work directly with all advertisers who join the platform to ensure that the ads remain high quality.
Instagram is almost entirely visual, its content stream consists of celebrities advertising their own lives and brands trying to get in on the action as well. It’s beautiful, distracting eye candy that’s pleasing to us all.
This plays right into the hands of advertisers because it’s exactly what they want. Instead of Instagram changing their platform around to monetize, the ads can fit in seamlessly.