Photo-sharing social platform Instagram has announced that it will roll out in-feed ads to Australia, Canada and the UK later this year. The company owned by Facebook has been trialling ads in the US since the end of last year with a small number of selected brands which already had a good following on the platform ( e.g. Ben and Jerry’s, Levis, Adidas).
Instagram said that the US ads have in some cases generated results “well above the ad industry’s average for performance,” however details were not provided. A month-long campaign is said to cost between 350,000 and 1 million USD.
The launch in Australia will follow a similar pattern with Instagram not rushing into the roll-out and initially working with a selected number of brands already successful on Instagram. The mobile app emphasises that its aim is to create ads that are “engaging and feel natural in people’s feeds.” You can read more on native content and advertising in our blog post here.
Instagram has over 200 million users world-wide and approx. 1.6 million in Australia. While ads won’t become available to any business from the start it will be interesting to see whether the platform will continue growing or if users are going to retreat from using the app once ads have started to appear in their news feed.
We can see that since Facebook’s changes late last year, many users in the 22-40 age brackets have shifted their activity to Instagram, a move to paid ads may slow this down.