In the wake of Twitter’s IPO, stories are being released regarding startups, founders, hashtags and more. However, Friday, October 4th’s edition of the Wall Street Journal headlined that “Instagram Will Begin Carrying Advertising”. What?
Social media sites like Instagram have a few options available to them for generating a healthy profit. One of those options is by advertising. When Mark Zuckerberg elected to purchase Instagram in 2012 for $1 billion, the site did not feature any advertising. Now, Instagram is a Facebook subsidiary, designed to be utilized in sync with Facebook’s other capabilities.
What would you do if you were Facebook/Instagram? It took Facebook years to agree to feature advertisements. As a user, do you support this tactic? Does it create value for both the company and the consumer?