Facebook Inc (FB): Instagram launching ad platform in the U.K., Canada, and Australia
Facebook Inc (NASDAQ:FB) photo social network Instagram has announced that it is expanding its advertising platform to the U.K., Canada, and Australia later this year. Facebook acquired Instagram for $1 billion in 2012. It introduced ads to the U.S. in November. Instagram said that advertisers had positive results and in some cases, were well above the ad industry average for performance.
“We are committed to learning as much as we can while building Instagram as a sustainable business,” said Instagram in a statement. Instagram currently has around 200 million users. It is estimated that around 35 million Instagram users are in the U.S., which means there is a large opportunity to monetize users outside of the U.S.
Instagram tested advertising in the U.S. with a select few companies, including Adidas, General Electric, and Levi’s. The program was expanded to another 20 companies like Taco Bell. Monthly ad campaigns per client could reach nearly $1 million, according to several reports. Facebook has been careful to introduce ads into Instagram because users fear that the experience of using the app could drop in quality.