Instagram now reaches 200,000 mobile advertisers

Anne Freier

In Mobile Advertising. February 26, 2016

Instagram, the popular imaging site owned by Facebook, this week said it had reached over 200,000 advertisers. The company opened up its advertising business to marketers of all sizes in September 2015. Since then, it has been busy ramping up its features, such as 30-second video ads and offering additional image options.
Instagram attracts 200,000 advertisers
By comparison, the total number of advertisers on Twitter during Q4 2015 reached 130,000. Facebook has a total of 2.5m active marketers and generated ad sales totaling $5.8bn during the last quarter of 2015. The company didn’t disclose how much of it came from Instagram ads.
eMarketer estimates suggest the app generated $0.6m in mobile ad revenues during 2015.
Much of Instagram’s growth can be attributed to international expansion with 75% of advertisers coming from outside the US, spreading across 200 countries.
Sheryl Sandberg, COO, Facebook, confirmed to investors during the Q4 earnings call in January:

“[Facebook and Instagram] have become the two most important mobile advertising platforms. Facebook and Instagram drive business results for our partners – helping move products off shelves online and off.”

Instagram has been proven very effective for engagement. However, Forrester Research found that user interactions with brands fell between 2014 and 2015. Despite the sharp drop, Instagram remains the “king of social engagement”.
Instagram still has the highest social engagement
Screen shot 2016-02-26 at 7.40.06 AM
Brands are well aware of the positive results for their engagement. German supermarket chain REWE recently posted simple meals alongside inspiring copy. The ads generated a 37-point lift in ad recall, 6.1x above the Nielsen norm.
Smaller brands such as Brazilian pet store PetLove, have also benefitted from Instagram ads, driving mobile app installs.