Seeking Alpha

Brand ads coming to Instagram, Facebook opens up Home a bit

Instagram (FB), ad-free thus far, says it will begin showing U.S. users "an occasional ad" in their feeds in the next couple of months. The ads will involve photos and videos, and come from brands a given user doesn't follow.

Instagram: "Our aim is to make any advertisements you see feel as natural to Instagram as the photos and videos many of you already enjoy from your favorite brands ... If you see an ad you don’t like, you’ll be able to hide it and provide feedback."

Facebook has promised Instagram, already used as a promotional tool by many top brands, will see ads in time, but has also suggested it will take a cautious approach. Observers have pointed out the 15-second length of Instagram videos matches that of short TV ads.

Separately, Facebook is adding support for Instagram, Flickr, Pinterest, and Tumblr photos to its Home Android UI, which has seen a bumpier debut than the company expected. Mark Zuckerberg recently stated Home would begin integrating content from 3rd-party social networks. No word yet on when feed updates from the likes of Twitter, LinkedIn, and Tumblr will be added.

Facebook finished AH trading up 0.8% following the Instagram news and Twitter's public S-1 filing.

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