While the Facebook owned Instagram has grown to a massive size in the past couple years, it has still yet to generate any revenue. While Facebook has been continuing to grow the service’s user base before implementing a way to monetize it, Mark Zuckerberg revealed at today’s earnings call that the company plans to implement advertising to Instagram in the future.
“Kevin [Systrom] has always been clear that we’re building Instagram to be a business,” Zuckerberg stated. “We expect over time to generate a lot of profit from it. We think the right focus for now is to continue increasing the footprint of Instagram and, when the right time comes, we’ll think about advertising.
Although Zuckerberg confirmed that ads are coming, he still retained from giving any sort of time frame as to when that will happen.
Companies are often very cautious when implementing advertising to ensure that they don’t ruin their popularity or growth. Massive startups like Snapchat continue to operate without profit as they try and find the smartest ways to implement methods of monetization.
After Facebook announced last month that Instagram now has 130 million active users, the money Facebook will end up making will likely have been worth the wait.
Photo Credit: Daniel*1977cc
