By Adam Levy
In June the number of advertisers on Instagram was in the hundreds. Now it’s in the hundred thousands. Instagram announced that it surpassed 200,000 advertisers on its network five months since taking its self-serve ad platform global.
While 200,000 is still a small amount compared to parent company Facebook‘s (NASDAQ:FB)2.5 million active advertisers, it’s more than Twitter (NYSE:TWTR), which told investors it reached 130,000 advertisers in the fourth quarter. Considering Twitter already had 60,000 advertisers at the end of 2014, it’s not doing nearly as well as Instagram in attracting new advertisers.
The keys to success
Instagram has several advantages working in its favor compared to Twitter: its parent company already has 2.5 million active advertisers, its audience is more engaged, and its audience demographics skew younger.
Instagram is seeing a huge benefit from Facebook’s existing customer base. Facebook integrated Instagram ad purchasing with its main ad buying platform after Instagram opened its API last Summer. In the fourth quarter, Facebook reported that 98 of Facebook’s top 100 advertisers also advertised on Instagram. The integration of Instagram ads into Facebook’s ad buying tools undoubtedly is playing a big part in Instagram’s ability to attract new advertisers.
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