Recently, Instagram has decided to open its ad platform for all kind of businesses.
In 2011, Facebook acquired the photo sharing service for $1 billion. Since then, the social networking site has not focused on advertising. It only allowed selected famous brand to advertise their products. It was obligatory for the brands to specially design new ads for the service.
As per the recent announcement, marketers who already advertised on Facebook would be permitted on Instagram. However, the company is planning to expand the service till the end of 2015.
Presently, Facebook has more than two million advertisers. Majority of them are interested to start their business on Instagram as well. As a result, the firm will generate a large amount of revenue from advertising.
The firm also intends to release new advertising features such as direct response ad formats and newsletters. The primary goal is to make appealing and user-friendly ads. It will definitely attract more targeted customers as compared to the previous ones.
These changes will surely increase number of advertisements of the site. However, it does not mean that users’ feed will be packed with them. Instagram engineers have specially designed new algorithm to display limited ad on the site.