Instagram is proving to be a haven for advertisers thanks to them being under Facebook’s ad umbrella and benefiting directly from its parent company since it has over 3 million advertisers.
It seems the company is reaping big since their efforts of being connected to Facebook and their attractive ad platform is pulling in advertisers since they have more than doubled their active advertisers to 500,0000. They announced towards the end of February that they had 200,000 advertisers which is just slightly over a half a year ago and growing its advertiser base 2.5 fold is no mean feat. At the 200,000 mark, they had already passed Twitter’s count which was reported to be 130,000 and now surely they are way much ahead of the veteran.
Instagram gave reasons why there has been an explosion in the number of advertisers signing up to put ads on the network. Apparently, 50% of Instagrammers follow a business, 60% of people say that they “learn about a product or service” on the network and 75% of people take action on the ads they see. In addition, there has been a total of over a billion actions on ads which involve the likes of online conversion or mobile app installs.
On May the company had introduced new tools that would help businesses publish ads on the network. It included tools like Insights, Business Profiles and Promoted posts. This was a great move as according to Instagram, this led to more than 1.5 million businesses converting to a business profile within the first two months of being launched. The social network also boasts a monthly active user base of over 500 million and coupled with this healthy advertiser base, it is no surprise to see analysts predicting that it will become a proper cashcow for Facebook.