Facebook Inc (NASDAQ:FB) has hinted many times that it has all the plans to start monetizing its Instagram social media platform. After all, it has above 300 million monthly active users. These users are mostly millennials—-the most favorite age group of advertisers. Facebook’s Instagram has started rolling out some new formats for ads. Facebook wants to give advertisers what they want: a quick action oriented ad which could prompt the user to buy, click or shop online. Facebook Inc (NASDAQ:FB)’s Instagram currently has ads which are not much different from other ads which you see on Facebook and other social media platforms.
Facebook Inc (NASDAQ:FB) has also said that it wants to give more control to advertisers to let them target their potential customer base. Currently, Facebook is only giving basic information to the advertisers like age, country, and gender.
Facebook Inc (NASDAQ:FB) could make billions of the millions of its active Instagram users. An average Instagram user spends around 21 minutes daily on the app. This is a huge opportunity for advertisers too.
But Facebook Inc (NASDAQ:FB) says that it will not roll out all the ads features on Instagram overnight. It will do everything slowly and nicely. Let’s face it: no one likes ads, but it’s the only way for the companies and advertisers to monetize. If Facebook Inc (NASDAQ:FB) could turn Instagram ads into something attractive, useful, spam-less, the multi-billion dollar ads industry could take a huge turn.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).