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NEW YORK (
Facebook's(FB - Get Report)Instagram has unveiled what its marketing advertisements as the company attempts to boost revenue in hopes that the social networking leaders can start to see a return on its investment. Facebook bought Instagram last year for about $730 million in cash and stock.
Earlier this month, Instagram
announced the ad campaign as part of its campaign to start generating revenue. The company has more than 130 million daily active users (DAUs), reaching the 100 million user mark faster than Facebook did.
On Facebook's second-quarter earnings call, CEO Mark Zuckerberg talked about the potential of Instagram as a business. "There are so many directions to expand this in that we think that the right focus for now is to continue just focusing on increasing the footprint of Instagram," Zuckerberg said on the call. "And when the right time comes then we'll think about doing advertising as well, but I think that's going to be a really big opportunity."
The company made the following announcement on its
A few weeks ago, we shared our plans to introduce advertising on Instagram. Today, we want to provide a few more details about exactly what ads on Instagram will look like.If you're in the United States, you'll see the sample ad above sometime in the coming week. This is a one-time ad from the Instagram team that's meant to give you a sense for the look and feel of the ads you will see.You'll know a photo or video is an advertisement when you see the "Sponsored" label where the time stamp normally would be. Tap this label to learn more about how advertising works on Instagram.We want ads to be creative and engaging, so we're starting with just a handful of brands that are already great members of the Instagram community. If you see an ad that doesn't interest you, you can tap the "..." below it to hide it and provide feedback about what you didn't like. This will help us show you more interesting ads in the future.Our focus with every product we build is to make Instagram a place where people come to connect and be inspired. Building Instagram as a business will help us better serve the global-and ever growing-Instagram community, while maintaining the simplicity you know and love.As always, you own your own photos and videos. The introduction of advertising won't change this. If you have other questions about how advertising on Instagram works, you can learn more here.Thanks for listening and for being a part of the Instagram community.
Shares of Facebook were higher in Thursday trading, gaining 0.84% to $52.34.
Written by Chris Ciaccia in New York