Instagram, the popular photo and video sharing app, revealed in August that they were opening their advertising platform to a range of “experienced marketing partners” including Hootsuite, Kenshoo, Brand Networks, Salesforce Marketing Cloud, Unified, SocialCode, 4C, Nanigans, and Ampush for the first time ever. This move will mean companies can start purchasing Instagram advert spots easily and effectively, allowing for more successful marketing strategies. This is a huge step as it means that companies do not have to go through the previous difficult measure of getting adverts on Instagram and also makes it easier to work alongside other digital ad buys such as Facebook and Twitter. Jamie Tedford, Brand Networks CEO and co-founder, suggested that the Instagram Ads API “is one of the most anticipated moments in the evolution of advertising, and we expect the platform’s offering will continue to expand rapidly.”

So what is an API?

API stands for an Application Programming Interface and will allow companies to programmatically access the advertising platform from their own advertising tools. Developers will be able to manage audience data, allowing for particular demographic targeting along with the easy management of adverts and better campaign creation. There will also be the ability to run analytics, allowing for easy comparisons with Facebook and Twitter and maintain a cohesive plan across these primary social media platforms.

And what does this mean for Instagram?

Instagram is currently the fastest growing social media network in the world, so for this step to API marketing there will be an even bigger increase in the companies revenue. EMarketer predicts Instagram is on track to generate $595 million in advertising revenue this year, and by 2017 it will be on track to surpass Google and Twitter in terms of US mobile display ad revenues.

This isn’t just a big move for Instagram and the financial gain it will bring, but for a social media platform that hasn’t featured many ads before it will generate huge interest from a much wider range of companies changing the content and demographic of the platform itself.

One thing that critics will be observing is if Instagram is capable of managing all these ads, that will not be checked as thoroughly as previous adverts and the effect it will have on its community. As a platform that has been renowned for its subtle, high quality advertising it will be interesting to follow. On the other hand a huge positive is that as this develops, smaller and independent companies will be able to use this platform to promote their own business and it will not be just the largest companies that have enough cash to spare.

An Instagram representative stated to Tech Insider: “The Instagram Ads API will help us make ads more relevant to the community, serve more diverse business objectives, and make buying on the platform easier for advertisers. We started working with a group of Facebook Marketing Partners a few weeks ago and they’ve brought great experience and technological savvy onto the platform. We’ll continue to build upon the Instagram Ads API in the coming weeks and months.”

Sources:
https://business.instagram.com/advertising/

http://www.socialmediatoday.com/social-business/adhutchinson/2015-08-05/instagram-opens-ad-api-partner-program-continues-shift

https://instagram.com/developer/

http://uk.businessinsider.com/instagram-switches-on-ads-api-2015-8?r=US&IR=T

http://www.thedrum.com/news/2015/08/04/instagram-just-made-major-move-going-turn-it-huge-advertising-business