Due to the photo-sharing service of Instagram, the app is very visual and with very clean user interface. Advertisers are now using Instagram to reach more young audience and build brands in Canada. In the past, ads have already existed in Instagram in the U.S., Britain and Australia. The new ads in Instagram allow companies to get more exposure without having people following them in Instagram. The ads are just like regular news feeds, so people would more likely to click them while scrolling through. Mobile ads are considered hard to work with because the interface of mobile device is relatively small. By putting ads at the top or bottom of the screen and even on the side, people would usually find them annoying and just ignore them, but now Instagram ads are presented in a more natural way, and people can treat the ads as regular news if the image or video look appealing to them. Therefore, I find this can be successful as people nowadays also spend lots of time on their mobile device at anywhere and anytime. As evidence, 66% of ads revenue Facebook has comes from mobile.

For the Canadian launch, Instagram has picked six advertisers it will work with at first: Hudson’s Bay Co., Target Canada, Sport Chek, Air Canada, Travel Alberta and Mercedes-Benz Canada. More advertisers will join Instagram and launch their campaigns a bit later. As a company owned by Facebook Inc, I find that Facebook’s put a lot of effort towards advertising, which may due to the company has been publicized and as a business, it has to be “sustainable”. I would like to see people’s votes on free service with lots of ads or premium service without ads. I think it would also depend on how many connections the person has on the platform.

Source:

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/brand-building-one-instagram-post-at-a-time/article21514759/

http://infospace.ischool.syr.edu/2013/10/07/instagram-ads-twitter-ipo-reveal-and-more-social-media-roundup/