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Instagram says advertising base tops 1 million businesses

Published 2017-03-22, 09:00 a/m
© Reuters.  Instagram says advertising base tops 1 million businesses
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SAN FRANCISCO, March 22 (Reuters) - Instagram is expected to announce on Wednesday that it has reached more than 1 million monthly active advertisers, as the Facebook Inc-owned FB.O photo-sharing app tries to become a center of online commerce.

The number of advertisers has grown five-fold from 200,000 a year ago, Instagram's vice president for business, James Quarles, said in a phone interview this week. He called the 1 million number a "milestone."

Facebook bought Instagram for $1 billion in 2012, and initially, the app had limited advertising with only a handful of well-known brands.

Last year, Instagram began pushing businesses that had created standard profiles to adopt business-specific profiles, and 8 million businesses have done so, Quarles said. Instagram is able to use Facebook's ad technology to target specific audiences.

Facebook's apps compete against rivals such as Snap Inc (NYSE:SNAP) SNAP.N , Alphabet Inc's GOOGL.O Google and Twitter Inc (NYSE:TWTR) TWTR.N for slices of digital advertising spending.

Quarles declined to give projections for further growth. He said there was "tremendous upside" and added: "This is about getting as many businesses as we can to have pages."

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