One of the most popular photo sharing apps out there is now opening up advertising on its platform. This is due largely to Facebook, which acquired Instagram in April of 2012 for a smooth $1 billion, and also the immense popularity of the app. According to the Pew Research Center, about 1 in 5 Americans have this app on their phone. This is pretty amazing considering it has only been out in the world for just over three years. This could essentially be a huge cash cow not only for Instagram but for advertisers as well, depending on their target market.
So who exactly is using this app? The research says Millennials. These people are the first generation to really harness the whole smart phone impact. According to the Pew Research Center’s Internet and American Life Project almost half (43%) of 18-29 year olds have this app on their phone. When you cross into people who are 30+ years of age, the number of Instagram users drops off drastically.
I know, we are all sitting here rolling our eyes at yet another beloved app that is incorporating redundant, annoying advertisements, but the advertising opportunities will more than likely be low key. Considering the app doesn’t offer up a ton of space, options, or opportunity for extras, it is safe to say the advertisements won’t be overwhelmingly in your face with the latest and greatest action movie or toothpaste commercial.
Little is known about how the ads will function, look and mesh, but it is important to always be on the look out for opportunities to get in on the goods. One can assume that having the brains behind Facebook coming up with the plan, the advertisements will offer relevant, useful and targeted promotions. We are excited to see what is next in the mobile advertising world. What do you think of Instagram offering advertising?
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