Mark Zuckerberg: Facebook Will Make “A Lot Of Profit” From Instagram
When Facebook co-founder and chief executive officer Mark Zuckerberg hopped on the quarterly earnings call yesterday, he also spent time talking about how Instagram will make money. He did not reveal a specific timeline, but he did indicate that ads will be coming to the photo social network when the time is right.
“Kevin [Systrom] has always been clear that we’re building Instagram to be a business,” stated Zuckerberg. “We expect over time to generate a lot of profit from it. We think the right focus for now is to continue increasing the footprint of Instagram and, when the right time comes, we’ll think about advertising.”
Just like Facebook, Instagram lets users host photos for free without having to pay a monthly cost. Facebook also relies heavily on advertising as it consists of about 84% of their revenues.
Last month, Instagram announced that they have hit 16 billion photos shared, saw 1 billion “likes,” and is now at 130 million monthly active users.