Facebook Monetizing Instagram


Instagram has recently been purchased by Facebook for $1 billion. Instagram does not make a lot of money, and Facebook is making an effort to monetize the popular app. This article is very interesting because it touches on different suggestions Instagram can follow through with to earn more money. Should Facebook just put plain old ads on Instagram or try to avoid that path? Some potential monetizing suggestions were the following:

Make subscriptions necessary: after using a certain amount of storage space, sign up for a price plan; selling users data to third parties; trending images in the ‘explore’ section: advertisers will now be able to pay to promote pictures that they would like to be on Instagram’s explore homepage; charge brands to sell to consumers: allowing brands to provide links that are clickable so consumers can go directly to their site.

Would brands pay for this? As I stated earlier, Facebook has also thought of just adding advertisements in peoples Instagram news streams. Do you think Instagram users will stand for this? Will Instagram lose users? The whole article brings up a very thought-provoking concept. What do you think Facebook will do to try to monetize newly acquired Instagram?

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One Response to Facebook Monetizing Instagram

  1. I am not sure that subscriptions is the way to go. Given that the the typical Instagram user is young, and likely does not have a lot of money, it is not clear how successful this would be. Even thoughI think subscriptions may work for other services, Instagram might benefit from the good old advertising model.

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