Monday, October 28, 2013

Instagram and the future of branded advertising

Facebook recently disclosed that they will begin showing ads on people's instagram feeds. The move is hardly surprising given the $1B price tag that FB purchased it for, and with all trends pointing to mobile advertising as the future, instagram looks primed to ride the wave. As we spend more and more time on our phones, brands will spend more and more money to reach us.  According to emarketer, 18.8% of all 2013 digital ad spending in North America will go toward mobile internet ads — which include all mobile advertising on tablets, smartphones and other devices except messaging-based formats. By 2017, nearly half of all digital ad spending in North America will be on the mobile internet.  Many people already complain about the ads on facebook overwhelming them, and now it appears their beloved instagram feeds may be compromised too. 
Instagram has a rapidly growing and highly engaged user-base, and I believe advertisers will get creative in how they reach customers.  Users will be able to pick and choose which brands are relevant for them and when, hopefully allowing for a more curated feed of ads.  It could mean great growth for Facebook in the near term, but it also may push people to look for alternative, ad-free ways to distract themselves.

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