How Will Facebook Make Money on Instagram? Social Media Marketing | September 1, 2013 | By Aaron Schoenberger

After spending a whopping $1 billion to wrap its hands around Instagram, what exactly is Facebook going to do to ensure the investment pays off? Yes, owning the best thing since sliced bread is good in itself, but that won’t make their shareholders happy.

With the addition of video on Instagram, online video advertising will surely be the golden ticket. According to Topeka Capital Markets analyst Victor Anthony, “The 15-second time limit coincides with what we have heard is the exact length of time for Facebook’s planned launch of auto-play video ads, leading us to conclude that video ads on Instagram are on the come.” He went on to add: “Video ads on both Facebook and Instagram position Facebook, as a whole, to capture a meaningful slice of traditional media ad budgets.”

As an avid Instagram user (@sirbrainchild), I feel advertising on the platform will be both good and bad. From a marketing perspective it will be awesome for businesses looking to capture Instagram users, but at the same time it will crush the organic, real-world feel. They must find a good balance between ads and actual content, which will be tough.

What are your thoughts on Instagram’s plans for the future? Share below!



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