Instagram announced to 150 million users of their Ad plans on streaming four months after the video was introduced. It is said the ads will be introduced slowly. According to the company, “Ads will be images and video, carefully curated”.

Taking the advantages of this newly introduced plan, brands such as Burberry and Levi’s take their first step to be the advertisers, in the hope of reaching an even broader and larger range of users.

Although Instagram promises that brands of the ads will be familiar to the community, and quality of the ads will be high, users are still annoyed. One user says, “This is when I seriously stop using instagram. Not that I use it that much anyways.”

The consumer reaction directly connects to the idea of change in consumer behaviour, which we learnt in class. More consumers may switch from tumblr and Instgram to Vine, which is Ad-free. The reason is linked with the concept of Feedback Loops: Word of mouth. Instagram used to have a positive word of mouth because it’s Ad-free, nevertheless, currently, negative word of mouth has spread, which triggers more serious consumer consideration and possibly change in consumer behaviour.

Video: Instagram Introducing Ads, as Promised

Hyperlink: http://adage.com/article/digital/facebook-reveals-ad-plans-photo-service-instagram/244563/