Circa a month ago, the popular mobile-based photo sharing service Instagram announced to its US user that pretty soon advertisements will pop up in their feeds. Below you will see the first prototype that the company shared to its website.
Instagram stated that the sample you saw above will make its appearance in users’ feeds this week to prepare them for this new ad system. Fundamentally, it works as Twitter ads. It is identical to the ‘Promoted tweets‘ that are displayed on your timeline, despite the fact that you are not following the account holder of the particular tweet. Instagram will share photos which include the word sponsored instead of time stamp as well as a dots button on the bottom right-hand corner allowing the user to hide the ad, thus to help the company to display ads similar to his interest.
Instagram also said that it is going to start this initiate with companies that already are a part of its community. No word regarding which companies are going to be. Moreover, the company made it clear to us that the user will still own the picture or video he uploads to the network.
Source: Instagram Blog