Instagram has started to display ads, starting with a sponsored photo of fashion brand Michael Kors, and this is how it looks:
Last month the company announced two categories — Sponsored Photos and Sponsored Videos, which has now started to appear on user’s feeds, promising user engagement with those brands they don’t follow or aren’t aware of.
The very first ad that popped up was a sponsored photo of a Michael Kors ladies’ watch, displayed on a table, with a caption stating “Pampered in Paris.” Instagram in a note said, “Michael Kors ran the first ad on Instagram this morning, targeting women in the US in a certain age range.” By late Friday, the sponsored photo had garnered more than 181,000 “likes”, along with some comments by unhappy Instagram users.
Instagram currently has about 150 million active users, and Facebook is quite positive in making a good revenue from Instagram. It is also said that Facebook is carefully adding magazine-quality photo ads to Instagram as it hopes to bring in revenue from the service without alienating users.