How Will Consumers React To Instagram Ads?

InstagramInstagram recently announced that advertisements would soon be flooding the photostreams of their users, but how are users responding? Every ad will have a sponsored label, and Instagram is proceeding with extreme caution while implementing this new revenue stream. ABC News revealed that Instagram is only working with a select number of companies including Ben & Jerry’s, Burberry, General Electric, Levi’s, and Lexus based on the quality of their Instagram feeds.

The Consumer Reaction

A recent CEM blog, Cue the Hipster Freak Out: Instagram Will Have Ads, highlights the necessity for Instagram to become a sustainable company. Although mixed reviews are inevitable, could ads ruin the Instagram experience? Business Bee highlighted some of the public backlash witnessed on Twitter after the announcement.

Some user responses included:

“First videos and now ads? If Instagram adds a re-Instagram feature I’m done. #instagram”

“So @instagram plans to introduce ads within the next year,even more

reason to switch to @path”

“Ads are about to be on Instagram now. Thanks Facebook”

With 150 million active users, Instagram must carefully integrate marketing without losing customers. The Twitter community has been vocal about their unhappiness with the potential ads, but is it enough to stop the company that is owned by Facebook—probably not!

How Can Your Business Prepare for This New Advertising Platform?

According to Simply Measured, 67 of the Interbrand 100 companies are already on Instagram and are actively engaging users by sharing highly visual content. Brands like MTV and Mercedes-Benz have already witnessed a vast amount of engagement through the platform, proving that people do comment and like Instagram photos from companies. Like Facebook, Instagram is initiating advertising with larger brands, so smaller companies will have to wait—but that doesn’t mean they can’t prepare for the site’s ad expansion.

Gigaom predicts that Instagram ads will be the future of brand advertising. In order for companies to be successful, they will have to create Instagram-like content for their advertising campaigns. Furthermore, advertising for brands will be more valuable on the site because it will be exposed to individuals who are specifically interested in what the brand has to offer. Instagram plans to use social signals and other sensor data to place relevant ads on user feeds. Small businesses should use this information to start building their personal Instagram presence while waiting to purchase ads. It is important to work on developing strategic, artistic, and relevant photos that can serve as ads that will quickly get your point across. Companies can test the prospective effectiveness on their personal pages by engaging their followers and utilizing hashtags.

Instagram is one of the largest social media platforms, and it is important that businesses are prepared to jump on the site as an advertising platform in the near future.
Will your company be ready for the launch of Instagram advertisements?

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Kailee

Kailee Sisson is a writer originally from New York currently residing in Nashville, TN. She is an alumni of Belmont University with two degrees in Marketing and Music Business. During her free time Kailee enjoys writing music, playing with her dog Gatsby, running marathons, eating breakfast sandwiches, and watching Disney movies.

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