Instagram has started to use data and algorithms of its parent company – Facebook – for promotion and advertisement. It concerns especially the methods of the targeting system.
Now over 2 million of advertisers who publish commercial advertisement on Facebook will automatically get an offer to place their advertisement on Instagram as well. So far the geography of this service only covers the following countries: USA, UK, Canada, Australia, France, Germany and Brazil. Even these countries were receiving the access one after another, so the service coverage may be expanded shortly.
Let us remember that Facebook’s senior management has bought the photosharing service three years ago for $1 billion. Now the number of monthly active Instagram users has reached 300 million users. RBC Capital Markets’ analyst Mark Mahaney expects this number to grow up to 400-520 million of monthly active users.