Instagram’s Ka-Ching Mechanism

In the beginning, it was just a few large companies. Now, the local pizzeria can place an ad on Instagram, too.

The 300 million Instagram users can now expect a flux in ads in their photo streams from now on, because according to The New York Times, the company has opened itself up to ads from smaller companies, too. This means that from now on, even your favorite mobile casino will be able to promote itself on your photo feed.

Information on users’ gender, age and interests will help in targeting them with ads. For instance, if you’re a 50 year-old man with a love for poker and yachts (and have “followed” users according to your preferences,) you’ll probably receive ads tempting you to go on a casino trip or to buy the newest Jeanneau sailboat.

The estimated revenue after ads is between USD 1.3 billion and USD 2.1 billion

As The New York Times reported, the plan for Instagram ads is so that once users see an ad that caters to their liking, they can easily click on it and be redirected to the website. So, if you feel the sudden urge for some mobile casino gambling thanks to a great promotion, you’ll just be one click away from playing.

The program, however, has yet to evolve, because right now, user experience is not that fun. The New York Times states, for example, that links have to be cut out and pasted for users to be able to access the desired site. Rest assured, in due time, Instagram will probably figure everything out.