Tuesday Instagram revealed its much anticipated plan to open the application to an increased number of advertisers, making use of both better targeting and API.
Over the course of 2015, Instagram will open its doors to worldwide advertisers, making a go at in-app sales as well. Connecting Instagram users with their favourite brands and shopping destination for anything they desire marks the application’s strategy.
Significantly improved tools will ensure the strategy’s success, while tapping into Facebook users’ data. It’s a win-win situation both for advertisers looking for better product placement and for users that are looking to buy a certain product or download an app.
Facebook acquired Instagram in 2012 for a price tag of 1 billion dollars. Now, it is expanding its reach to cash in the success of the application. A little more than one year ago Instagram had already placed both photo and video ads belonging to a select number of marketing partners.
Now, the advertising sector gets a boost with the announced inclusion of businesses of all sizes into the select advertising strategy.
The next period will see an increase in direct-response ad formats placed on Instagram. For instance, newsletters will feature much more often, prompting the app’s users to sign up and keep in touch.
A post coming from Instagram announces that:
“People come to Instagram to follow their passions, from travel and fashion to cars and entertainment. People want to connect with business of all sizes on Instagram, from their local clothing stores and restaurants to the largest brands in the world”.
So the company ventured into making the wishes of both users and businesses come true. Instagram plans to do so by tapping into Facebook data, which counts an approximate 2 million advertisers. Couple that with the 300 million active users on a monthly basis perusing Instagram and there is the success recipe.
For the U.S., the most active age group hitting Instagram is represented by the 25 to 34 years old users. That stands for nearly one quarter of the 80 million U.S. Instagram users on a monthly basis.
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