The photo sharing service Instagram will start placing ads in users photo streams Instagram was bought by Facebook for $1bn (£619m), but has never made a profit. The company, which now has 150 million users, has been a favourite among consumers but has long left analysts wondering how it could turn enthusiasm among photographers into a business model. Early efforts by Instagram to generate revenue were met with user backlash, such as when the company changed the terms of service to seemingly indicate that it would own user images and could sell those images to advertisers. Social media advertising is a booming business & advertisers will spend $10 bn on social network ads worldwide this year. Facebook has boosted its efforts to gain a larger share of this ad spending.
Posted on: Sat, 05 Oct 2013 00:26:12 +0000