Facebook targets ad platform market through Instagram
By Yoon Sung-won
Benjamin Joe Facebook Korea CEO
Facebook, the world’s largest social networking service (SNS) operator, says its photo-based Instagram will provide a profitable marketing channel for Korean businesses.
Facebook Korea, a local branch of the global IT firm, said Instagram, which has over 400 million monthly users worldwide and is optimized for mobile devices, can effectively deliver advertisements.
“During recent years, the influences of mobile and visualized messages have expanded compared to those of text,” Facebook Korea head Benjamin Joe said during a press conference in Seoul, Thursday. “In the next three to four years, people may communicate with each other using virtual or augmented reality media.
“In the same vein, our photo-based service Instagram has seen rapid growth and will launch an advertisement and marketing platform, connecting actual marketers and consumers.”
Instagram was founded by Kevin Systrom and Mike Krieger in 2010. The mobile application has become hugely popular for its photo-centric message delivery system, which makes it different to Twitter.
The service had 80 million users globally by 2012, when Facebook bought it for $1 billion.
Facebook started testing the marketing and advertisement platform service in the latter half of last year and launched it in global markets, including Korea, in September.
“The number of active monthly Instagram users has reached 400 million as of now, jumping from 300 million nine months ago,” Joe said. “We have seen that more than half of the 100 million new users are from Europe and Asia. Korea, in particular, is one of the fastest-growing markets for the service.”
On Thursday, Facebook Korea invited marketers from local enterprises to adopt the Instagram advertising platform service. Officials from its partners, such as LG Household & Health Care, also participated in the event.
“As Instagram’s influence has expanded, we could establish diverse cooperation with local businesses,” Joe said. “We also have built many partnerships with Samsung.”
Based on its research of Instagram users here, Facebook Korea said users see the service as a place where they can express themselves and share photographic information on their interests.
“Marketers who want to successfully advertise their products, services or brands through Instagram should have a unique concept and identity and deliver them using high-quality images,” Facebook Korea’s creative strategist, Kyo Seo, said.
Seo said the survey also revealed that Instagram users are more likely to “unfollow” others who post improper or low-quality content. He said marketers should devise unique ways to improve their brand images.