Facebook’s IPO in May 2012 left a lot of questions, many of which have since been answered. The biggest question a lot of investors had was how Facebook as going to generate revenue over the long term and how it was going to monetize its mobile properties. The answer, as we know it now, was advertisements. Facebook now has ads littered through our news feeds, both on desktop and mobile, the latter of which is expected to generation $1 billion in revenue this year. So, when Facebook spent $1 billion on Instagram, the natural assumption was that ads were going to make their way to the photo-centric social network.
Now we know when: within the next year. The Wall Street Journal recently spoke with Instagram’s director of business operations Emily White, who said that ads are indeed coming in the long term, though Facebook hasn’t pressured Emily and Instagram to implement ads just yet. The fear, White explained, is that ads could kill off the vibe that Instagram already has.
With the introduction of video recently, it’s very likely we’ll see video advertisements as well. White didn’t specifically detail plans for how ads were going to appear, or where. However, it’s likely the format will follow Facebook’s implementation, where ads are placed sporadically throughout our news feeds.