Social media companies have seen Facebook’s model of advertising in the last few years and want to make advertising on social media less intrusive and more effective. They are doing this through what has been coined as “native advertising.” Targeted advertisements will come into your feed as though someone you were following posted a tweet or a picture. Instragram and Twitter plan on using this model of advertising in coming months.
Instagram recently announced that they would be running advertisements on U.S. photo streams. The advertisements are going to be pictures that people won’t mind having in their streams and won’t cheapen the applications like other forms of internet banner advertising. Instagram claims that the advertisements will be “beautiful,” and people will actually enjoy having them on their feeds. If people don’t like the advertisements, they will be able to block the ads and complain to Instagram what they didn’t like about the ads. Twitter is also planning to follow this model as well in the near future.
With Twitter’s impending IPO, the company released that 87% of their revenue comes from advertisements. They are looking for the model that will work most effectively when they officially go public and and to better target promoted tweets at certain customers. They recently acquired MoPub, which will give them the analytic power to match Facebook and Google. In a nutshell, if a user sends a tweet about running, Nike’s company could send a tweet to their feed about their new running shoes. This could give Twitter the power to grow and make a lot more money.
In summary, banner advertisements are dying and new forms of targeted advertising are taking over the digital world. Twitter and Instagram are leading the way to the social media advertising of the future.