3 ms·

If they monetize ig the way they monetize Facebook, they’ll wreck user engagement there, too.

elliekelly 7y ago
What's interesting to me about Instagram is that there are a ton of ads. Probably more than Facebook. But unlike Facebook, the most valuable ads run on the platform (and the ads most preferred by users) are from transactions that take place off of the platform. When Louis Vuitton wants to advertise on Instagram they don't open the Instagram Ad Manager. They call Kylie Jenner and pay her to post a photo. And not only do users not mind those ads - a lot of users seem to enjoy them. People actually seek out those types of ads. It's incredible engagement. But Instagram doesn't make a penny. And then the FTC, usually Facebook's nemesis, comes along and hands them a silver bullet to monetize Instagram without harming user engagement: Social Media Endorsement Guidelines.[1] If users are legally required to disclose when they've been paid to post something via #ad or #sponsored then Instagram could easily charge a small fee for every thousand views/comments/likes on those posts. Consider it a small tax for monetizing an otherwise free platform. They could even charge accounts a small annual "hosting" fee based on the number of followers to unlock/use the legally-required hashtags or for the ability to include hyperlinks. Is Kylie Jenner going to turn down a million dollars from Louis Vuitton because she'll get a $1,500 dollar bill from Instagram? Doubtful. She puts out content users want to consume. Instagram would get paid as the platform that brought all of those users together. Advertisers could still reach their audience and users wouldn't be, ya know, stalked. But what has Facebook done to monetize Instagram? The same thing they did with Facebook - cheap, high-volume surveillance advertising for $5/CPM. Instead of figuring out a way to monetize the advertisements that users like, Facebook decided to sprinkle their feeds with crappy/creepy t-shirt designs, drop-shipped Alibaba junk, and vitamins/CBD/essential oils that very well might kill them. If Instagram goes belly up Zuck & Sandberg have no one to blame but themselves. [1] https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking https://www.ftc.gov/tips-advice/business-center/guidance/ftc...

What's interesting to me about Instagram is that there are a ton of ads. Probably more than Facebook. But unlike Facebook, the most valuable ads run on the platform (and the ads most preferred by users) are from transactions that take place off of the platform. When Louis Vuitton wants to advertise on Instagram they don't open the Instagram Ad Manager. They call Kylie Jenner and pay her to post a photo. And not only do users not mind those ads - a lot of users seem to enjoy them. People actually seek out those types of ads. It's incredible engagement. But Instagram doesn't make a penny. And then the FTC, usually Facebook's nemesis, comes along and hands them a silver bullet to monetize Instagram without harming user engagement: Social Media Endorsement Guidelines.[1] If users are legally required to disclose when they've been paid to post something via #ad or #sponsored then Instagram could easily charge a small fee for every thousand views/comments/likes on those posts. Consider it a small tax for monetizing an otherwise free platform. They could even charge accounts a small annual "hosting" fee based on the number of followers to unlock/use the legally-required hashtags or for the ability to include hyperlinks. Is Kylie Jenner going to turn down a million dollars from Louis Vuitton because she'll get a $1,500 dollar bill from Instagram? Doubtful. She puts out content users want to consume. Instagram would get paid as the platform that brought all of those users together. Advertisers could still reach their audience and users wouldn't be, ya know, stalked. But what has Facebook done to monetize Instagram? The same thing they did with Facebook - cheap, high-volume surveillance advertising for $5/CPM. Instead of figuring out a way to monetize the advertisements that users like, Facebook decided to sprinkle their feeds with crappy/creepy t-shirt designs, drop-shipped Alibaba junk, and vitamins/CBD/essential oils that very well might kill them. If Instagram goes belly up Zuck & Sandberg have no one to blame but themselves. [1] https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking https://www.ftc.gov/tips-advice/business-center/guidance/ftc...