Instagram announced plans to introduce ads in users' feeds beginning over the next few months. Unlike its parent company, Facebook, Instagram will show ads to users irrespective of their stated interests. However, Instagram has stated that the company will test different ad formats and potentially allow some user control to make the feature as user friendly as possible.
While the introduction of ads to a previously ad-free site may cause user interruption or annoyance, it will generate a large revenue base for the company. These revenues offer Instagram the chance to make investments to improve its service offerings to users. Therefore, while an initial backlash or disruption may occur, introducing an ad-based revenue model will allow Twitter to ride the wave of increasing spend in the mobile ad space.
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