Is Instagram Missing Opprotunities Without An Advertising Platform?

  • Posted by Steve Goldberg
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  • July 14, 2013

It has been a few weeks, and we’re still in the afterglow of Instagram adding videos to the popular photo sharing app, and the jury is still out on whether these changes were well received by the majority of users. The question now becomes— is Facebook taking too long to recover some of their $1 billion dollar investment? According to Forbes, there are still no plans for formal video ads, despite Facebook adding the 15-second videos totheir arsenal of advertising mediums.

I think Instagram is missing a tremendous advertising opportunity that could significantly impact the way users consume video, as well as how brands interact with existing and potential customers. According to early numbers, over 5 million videos were uploaded within the first 24 hours of the video launch, with brands like Burberry, Red Vines, and Tony Hawk leading the boards.  Instagram can not only reignite the age-old digital strategy of user-generated videos, it could also propel Facebook into the number one spot for video platforms, beating Youtube.

Additionally, for brands like Burberry, the direct impact on sales could be harder to gauge. However, sponsored ad content could have great impact for mass-consumer brands like Tony Hawk. His brand could easily showcase new product demos, which according to a study by Invoodo, 52 percent of consumers say that watching a product video makes them more confident in online purchase decisions.

The implications for sponsored videos are pretty clear for the still-young social network. Whether it’s demoing a product, asking for customers to show off their skills with a product, or simply brand awareness,  hopefully they’ll show up to the party sooner than later.