Get Ready for Instagram Ads

Last year,¬†Facebook¬† (NASDAQ: FB  ) raised eyebrows when it agreed to acquire Instagram for a hefty $1 billion, even though the final purchase price ended up a bit lower. The social network recorded $435 million in goodwill on its balance sheet related to the deal, which represents potential risk should Instagram not live up to its lofty expectations.

Inevitably, Facebook would need to monetize the popular photo-sharing service, and that's exactly what's about to happen. Instagram is preparing to launch its ad platform next year, which could potentially be a major opportunity considering its large user base. Facebook has learned a lot building its own mobile ad business, and the company could redeploy those lessons within its Instagram subsidiary.

In the following video, Chris Hill discusses the prospects of Instagram ads with Evan Niu, CFA, and Jamal Carnette.

The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to dominate the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2637935, ~/Articles/ArticleHandler.aspx, 9/27/2016 12:06:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,172.63 77.80 0.43%
S&P 500 2,154.00 7.90 0.37%
NASD 5,285.49 28.00 0.53%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 11:51 AM
FB $128.38 Up +1.07 +0.84%
Facebook CAPS Rating: ***