Major changes are in store for Instagram as the photo-sharing app opens its newsfeed to sponsored advertisements. Earlier this month, Instagram and its third-party partners announced a mutual release of the advertising API, or application programming interface, and their involvement.
Acquired by Facebook in 2012, Instagram has now transformed into a notable competitor in the mobile advertising industry. Powerhouse rivals include Google and Twitter. Like its dominant counterparts, Instagram will now allow businesses to purchase ad space and design an effective marketing strategy with automated posts.
With this acclivous move, advertisers can now schedule out Instagram campaigns, cross-promote on other platforms and monitor engagement. They will also be able to utilize Facebook’s ad-targeting tools in Instagram ads. Instagram has previously released a “Shop Now” button and the ability for advertisers to link outside of the app, as well as the capability to include several images in a single post.
A representative for Instagram said, “The Instagram Ads API will help us make ads more relevant to the community, serve more diverse business objectives, and make buying on the platform easier for advertisers.”
This is not the end of development and growth for Instagram. The app’s developers plan to continue building upon the new API. Market analysts expect Instagram to bring in $595 million this year, and surpass Google and Twitter in ad revenue by 2017. Bank of America Merrill Lynch researchers predict Instagram to make $1 billion in 2017, and escalate to nearly $4 billion by 2020.
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