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Ads may come to Instagram

slate.com

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Re: Ads may come to Instagram

#31

Post by _delirium »

ceejayoz wrote: post #26
kyllo wrote: post #9

Kind of a condescending article. Really, Instagram pulled an enormous bait-and-switch. Create a great application, give it away for free until you've built up a huge base of users, then sell the application and its user base to another company and let them figure out how to actually make money off it. Understandably users are going to be upset because they're being asked to either pay for or see ads with something th…

This isn't so much bait-and-switch as it is a car dealership forgetting to put a price tag on a car and people getting mad that it isn't free to buy.

They didn't exactly forget, though: they actually went out of their way to paint a huge sign reading something like, "GREAT NEW CAR ... GET IT TODAY ... TOTALLY FREE ... COMPATIBLE WITH ALL GARAGES!" Of course, they didn't promise the car wouldn't play ad jingles through the stereo system, either.

Re: Ads may come to Instagram

#32

Post by kamjam »

jemka wrote: post #3

1. Facebook is a for profit company. 2. Facebook probably wants to seek a direct monetary ROI on Instagram. 3. Facebook may or may not have figured out that strategy. Either way, not revealing those details is an indication of nothing beyond standard business practice. 4. Some users don't like ads, which is evident by the popularity of ad blocking tools. 5. Some users don't mind ads, some even click on them, which is…

You mean it's not as simple as:

1. Buy Instagram for $1 billion

2. ???

3. Profit!

I never should have followed that business plan from those damned gnomes!

Re: Ads may come to Instagram

#33

Post by CommitPull »

I always found it cool that when you can't come up with any business at all and you're totally desperate, you still can do ads.

But for Instagram, sorry Adstagram?? They could do so much more. Fucking money sharks.

Re: Ads may come to Instagram

#34

Post by kyllo »

dasil003 wrote: post #22
purplelobster wrote: post #13

Earlier quoted context omitted.

Users don't really have any right to be upset over not being able to use services completely for free. Is this what the world has come to? Start-ups make their service free initially until they've gotten enough users, then try to monetize and then the users hop on to the next free service. And repeat. Either user expectations have to change, or start-ups will have to realize that they need to start monetize right awa…

Since seed investments continue at a breakneck pace, and since instagram sold at many multiples of any revenue stream their existing service could have provided, I don't see much chance of startups realizing they have to change. Likewise, user complaints are a tempest in a teapot. Does it matter to anyone how angry you are about the downward spiral of your favorite service? I actually think people enjoy their righteo…

Startups don't have to realize that they need to start monetizing right away.

Companies that buy startups need to realize that if they buy a startup that has only free users who aren't looking at ads, they might not be buying what they think they're buying. Because those millions of users have all been trained to expect to enjoy the service for free. So when you buy a company for its user base, you need to consider that free users are not worth what paying/ad-viewing users are worth, and if you try to charge or show them ads without creating more value for them in return, many of them might leave.

If companies that buy startups realize this, then the startups themselves will start monetizing right away, because it will be the only way to get acquired.

Re: Ads may come to Instagram

#35

Post by jpdoctor »

ryanwhitney wrote: post #14
quarterto wrote: post #11

Either: Facebook have no imagination. Or: Slate (and the internet) has the wrong end of the stick. Scenario the first. So FB dropped a cool billion on a photo-sharing social network and app with a sizeable, vehemently dedicated and pretty damn vocal userbase. Now they want to make money out of it. Fine. "So guys, Instagram monetization. Hit me." "Um." "Um." "Ads?" "Perfect!" I (and I'm sure a large majority of Instag…

No, it's that Business Insider writes trolly headlines. Nowhere in the interview did Facebook say nor "confirm" they were adding ads to Instagram.

> No, it's that Business Insider writes trolly headlines.

BI was the child of Henry Blodget, barred from the securities industry for the famous POS memo. That should tell you everything you need to know.

Re: Ads may come to Instagram

#36

Post by dasil003 »

kyllo wrote: post #34
dasil003 wrote: post #22

Earlier quoted context omitted.

Since seed investments continue at a breakneck pace, and since instagram sold at many multiples of any revenue stream their existing service could have provided, I don't see much chance of startups realizing they have to change. Likewise, user complaints are a tempest in a teapot. Does it matter to anyone how angry you are about the downward spiral of your favorite service? I actually think people enjoy their righteo…

Startups don't have to realize that they need to start monetizing right away. Companies that buy startups need to realize that if they buy a startup that has only free users who aren't looking at ads, they might not be buying what they think they're buying. Because those millions of users have all been trained to expect to enjoy the service for free. So when you buy a company for its user base, you need to consider t…

I think Facebook knew exactly what they were buying: a hedge against disruption by the strongest startup in the fastest growing area of relevance to Facebook, mobile photos.

I also don't think Facebook gives a shit about a lot of hand-wringing hipsters. They've been creating bad press with their decisions for years, I hardly think this little impotent uprising will ruffle their feathers.

Re: Ads may come to Instagram

#37

Post by dm8 »

quarterto wrote: post #11

Either: Facebook have no imagination. Or: Slate (and the internet) has the wrong end of the stick. Scenario the first. So FB dropped a cool billion on a photo-sharing social network and app with a sizeable, vehemently dedicated and pretty damn vocal userbase. Now they want to make money out of it. Fine. "So guys, Instagram monetization. Hit me." "Um." "Um." "Ads?" "Perfect!" I (and I'm sure a large majority of Instag…

>> I (and I'm sure a large majority of Instagram users) am pretty much instantly put off by ads. Especially in-app or in-feed apps. Any ad space sold on my screen is pretty much money wasted.

Why don't you like them? Aren't they better than spammy banners? Or even worse-- the interstitials where you have to watch ad for few seconds compulsorily!

All the promoted content in feeds (like promoted tweets) has clearly marked as an ad and they provide consistent UX with rest of application. So I'm curious to know what's the gripe?

Re: Ads may come to Instagram

#38

Post by kyllo »

dasil003 wrote: post #36
kyllo wrote: post #34

Earlier quoted context omitted.

Startups don't have to realize that they need to start monetizing right away. Companies that buy startups need to realize that if they buy a startup that has only free users who aren't looking at ads, they might not be buying what they think they're buying. Because those millions of users have all been trained to expect to enjoy the service for free. So when you buy a company for its user base, you need to consider t…

I think Facebook knew exactly what they were buying: a hedge against disruption by the strongest startup in the fastest growing area of relevance to Facebook, mobile photos. I also don't think Facebook gives a shit about a lot of hand-wringing hipsters. They've been creating bad press with their decisions for years, I hardly think this little impotent uprising will ruffle their feathers.

Yes, it's also a strong possibility that Facebook didn't buy Instagram for its users, but bought Instagram simply because they didn't want to compete against Instagram.

Re: Ads may come to Instagram

#39

Post by aes256 »

jemka wrote: post #3

1. Facebook is a for profit company. 2. Facebook probably wants to seek a direct monetary ROI on Instagram. 3. Facebook may or may not have figured out that strategy. Either way, not revealing those details is an indication of nothing beyond standard business practice. 4. Some users don't like ads, which is evident by the popularity of ad blocking tools. 5. Some users don't mind ads, some even click on them, which is…

> 5. Some users don't mind ads, some even click on them, which is evident by the revenue ads generate.

Don't underestimate people clicking ads for the wrong reasons (e.g. they don't realize it's an ad, the ad makes misleading or incorrect claims, the user is just using the ad as a convenient shortcut to a website when searching for it on Google, etc.)

I'd guesstimate this to be the majority of ad clicks and revenue.

Re: Ads may come to Instagram

#40

Post by rogerchucker »

goatforce5 wrote: post #20
kyllo wrote: post #9

Kind of a condescending article. Really, Instagram pulled an enormous bait-and-switch. Create a great application, give it away for free until you've built up a huge base of users, then sell the application and its user base to another company and let them figure out how to actually make money off it. Understandably users are going to be upset because they're being asked to either pay for or see ads with something th…

How's it a bait and switch? Should free things be provided to you forever? If something is being given to you for free, shouldn't you realize that at some point money has to enter the equation? “If you are not paying for it, you’re not the customer; you’re the product being sold.”

If you start free, stay free. If you start with $$$, then try to go $$. That's just the way it will always work.
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