Does Facebook Inc (NASDAQ:FB) Want To Make Money From Instagram Ads

Posted by Michael Korte October 4, 2013 0 Comment 1023 views


In the spring of last year, Facebook Inc (NASDAQ:FB) acquired Instagram for an amount of $1B. Now there news is that advertisements will show up on Instagram as well. The company’s blog post read that they have big ideas that will be incorporated in the future and that one important part of the plan is to turn Instagram into a sustainable business. Over the next few months, users in the United States might see and ad or two in their Instagram feed.

Change in strategy

The post said that video and photo ads are not what the regular internet user expects from Facebook Inc (NASDAQ:FB)’s image-sharing service that is available on the mobile platform. However, this is the one way in which the mobile world operates. At the outset, Facebook Inc (NASDAQ:FB) and Twitter did not choke their sites with ads. However, the fact remains that social media will have to eventually pay for itself. When the company goes public, the pressure to garner profits mounts even further and eventually even Mark Zukerberg has to set aside his idealistic ideas for a while and go with the flow.

The IPO that gained strength

Twitter is all set to release its IPO details. The IPO might be launched as soon as next month and the Instagram news has sort of coincided with it. At the start, the Facebook Inc (NASDAQ:FB) IPO had been very unstable. However, slowly but surely, things have started changing and Wall Street  has probably started believing that the company will actually be successful in bringing in some revenue from mobile advertising. Instagram is one step in this direction.

Facebook Inc (NASDAQ:FB) said that these ads will come from brands that users don’t “follow” on the service. However, they will still be given the option to “hide” any ad they don’t want to see.



About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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