Since the initial release of Instagram in 2010, the online photo sharing application currently has more than 300million active users! According to its official blog, Instagram is focusing on key areas which includes offering action-oriented ad formats, enabling more targeting capabilities and making it easier for businesses of all sizes to buy ads on its social network. For starters, Instagram is beginning to test some direct-response ad formats that will help consumers learn more about a product or service by allowing them to take action directly from an ad, such as purchasing a product or downloading an app.

 

Advertisers want to drive business results across a variety of objectives — from awareness and message association to website visits and offline sales — and our ad formats will evolve to serve all those goal, – Instagram
The company further stated below:
There are more than two million advertisers who actively use Facebook to market their business and we want to leverage the best of Facebook’s infrastructure for buying, managing and measuring the success of ads on Instagram. We will start by opening the Instagram Ads API to a select group of Facebook Marketing Partners and agencies, and we plan to expand globally throughout the year.

In addition to direct-response ad formats, Instagram is also working to help advertisers target their messages more effectively later this year. In fact, Instagram is working with Facebook to enable advertisers to reach people on its social network based on demographics, interests and other information. Moreover, Instagram is improving the feedback mechanisms within its social network to give users better control so they can improve the relevance of ads they see.

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With this new coming development and considering the large number of users on Instagram right now, there are chances Instagram might turn out to be much bigger than twitter is the the next few months. What do you think?
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