Facebook's recent $1 billion acquisition of Instagram presents new challenges to and opportunities for marketers. For brands, this acquisition is an opportunity to strengthen their digital ecosystems by leveraging both platforms consistently and encouraging deeper engagement with consumers.
While Instagram doesn't currently have an ad program, companies like Instagrid Network want to connect brands with Instagram users. Their idea is to set up programs that pay top Instagrammers to share photos of a brand's products.
Because Instagram is all about sharing pictures, some companies are realizing that an artsy tilt-shift photo of the bag of chips you're eating could actually be worth something.
These paid endorsements will be unobtrusive, and will look exactly the same as every other photo populating your feed. Kevin Systrom, the CEO of Instagram, says, "It doesn't feel like advertising when you open Instagram - it feels like entertainment."
While the partnership between Facebook and Instagram will attract many new users to join the Instagram community, brands need to keep in mind which channel is more relevant to the brand and its consumers in order to reach their target market effectively.
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