SOCIAL: Doubts remain across the board that Facebook, despite the vast size of its community, is a logical place for brands to advertise. Throw in the mobile element and scepticism only increases further. Perhaps, therefore, this is now why Facebook splashed out $1 billion on Instagram. Read more on Seeking Alpha.
While Facebook has been a success and is earning advertising revenues, there is another story.
While the user targeting method is very efficient and does cost a pretty penny, users generally do not participate and engage in the ads.
A thesis with Instagram is that in finally holds the key to effective advertising as the main Facebook is currently an inefficient and a poor choice of advertising dollars.
Instagram, however, is perhaps one of the best advertising platforms some ad execs have ever seen.
Read more on Seeking Alpha
NB:Instagram filter image via Shutterstock.