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Instagram’s new API is a whole new advertising business

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It’s now official – Instagram will update the app with a new API focused on advertising. The application programming interface (API) is going to introduce an interface similar to Facebook – where we already got used to viewing the sponsored posts. And while users are complaining, this is definitely a minor issue and won’t hurt the app so badly. Instead, it will create an enormous leverage for Instagram to monetize its popularity.

Turning from only an app without revenue to a big business, with this new advertising API, Instagram will shift to an experience which will be a rival to Facebook, Google and Twitter. The API will be totally flexible for marketers to start buying Instagram ads which we have seen to be amazingly targeted on the other social networks. Assuming that the scenario will be same on Instagram, it is possible for advertising on this social network to have even bigger effect on sales, according to many internet marketing analysts.

As they say, Instagram captures the user’s eye to view pictures instead of just scrolling, and with picture-after-picture, the user will hardly not focus to seeing an app. Simply, we will get to see and explore ads in a whole new way – and that is the main reason why this social media advertising frenzy of Instagram continues to attract big marketing investors.

As analysts predict that Instagram may reach amazing popularity. EMarketer predicts an advertising revenue of $595 million this year, while Bank of America Merrill Lynch predicts a whole graph of exponential growth of revenue, rising to as much as almost $4 billion by 2020.

But that’s not all.

According to Hootsuite, the amazing sharing app, the integration of Instagram and the introduction of advertising on this social network will not only make marketing a more precise and to-the-point process – it will also engage marketers and social media managers more and more into the process coming from the fact that they will no longer need to switch between their phones and computers to track their social media campaigns. The idea of the revolutionized marketing era is definitely adding the mobile aspect of advertising, with social media being on the first place.

Coming down to the conclusion, as analysts say, the value of a picture as we digest it today on Instagram is really precious. That is why Instagram will probably make us wonder why it shifted so much but in the same time create a massive opportunity to serve diverse business objectives from the advertising side of view. Buying on the platform in the end will be easier for advertisers, while purchasing products a better experience for any user.