Instagram’s Director of Business Administration, Emily White announced that the photo app will introduce paid promotional products within the coming year. With over 150 million users worldwide, the service is one of the most popular smartphone apps. Facebook bought the service in 2012 and wants to profit from it in the future.
Does the app lose its "cool factor"?
Numerous companies are using Instagram already for campaigns and now the Facebook subsidiary wants to earn. This news will not appeal to many users of the photo app. For example, advertisements might appear in the search function, according to a report in the Wall Street Journal. However, companies are interested in linking photos of products to their website.
In April 2012, Facebook had bought the app for around 800 million US dollars, according to own data, then around 30 million people used the Instagram program. With the photo application, handy users can take photos, change them with artistic effects, and upload them to Facebook immediately.
In January, Instagram withdrew the announced privacy rules after user protests.
Instagram has to expect that this innovation could cost a few users. According to Emily White, it was a great challenge to find a way to do so without "easing the Instagrams Coolness Factor". This should be the top priority.
So now it is all about the implementation of this project. For example, the money earned with switched advertisements can flow back into the app's development. Of this, the users would have something again. And for Facebook too, an application that finances itself is much more attractive and gets more attention. It remains to be seen how the user community reacts to the advertising circuits. No start date is yet known.
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