eMarketer.com recently predicted that Instagram mobile ad revenues will reach $2.81 billion worldwide in 2017, surpassing both Google and Twitter.
Almost two months ago, Instagram announced its plan to sell more ads. Over the course of this year, the application will open up to businesses of all types and sizes, according to a June post on Instagram’s blog. The social media platform, which was bought by Facebook for $1 billion in April 2012, intends to focus on three key areas: “Expanding ad offerings to include action-oriented formats, enabling more targeting capabilities, and making it easier for businesses large and small to buy ads on Instagram.”
According to Facebook’s Chief Operating Officer Cheryl Sandberg, consumer experience remains key in the evolution of advertising on Instagram. “As we ramp Instagram ads, we remain focused on quality and relevance to insure the best experience for users and the best performance for marketers,” she said.
The social network will approach its new plan with caution. Perhaps Facebook is treading so softly due to the backlash from ad tests in 2014. For example, in March 2014, Charity Water ran a sponsored post that received a great deal of negative comments. McDonald’s had a similar issue when its August 2014 ad, targeted at the millennial Instagram userbase, also received harsh feedback from users.
In an attempt to avoid a repeat of such backlash, AFR reports that “Instagram has sought to maintain strict controls on how ads can look, with a set of creative standards that are intended to allow only unique, bespoke images.”
Cheer up, young millenial Instagram users. These upcoming ads can’t be all that bad. After all, the executives are on your side.