Facebook's Instagram to expand ads beyond U.S.

SAN FRANCISCO Tue Jun 10, 2014 6:21am IST

A photo illustration shows the applications Facebook and Instagram on the screen of an iPhone in Zagreb April 9, 2012. REUTERS/Antonio Bronic/Files

A photo illustration shows the applications Facebook and Instagram on the screen of an iPhone in Zagreb April 9, 2012.

Credit: Reuters/Antonio Bronic/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Instagram, the mobile photo service owned by Facebook Inc, is expanding its nascent advertising business beyond the United States and will begin showing ads to users in Britain, Canada and Australia, the company said on Monday.

The ads will start to appear on versions of the service in the three countries later this year, Instagram said in a post on its official blog.

A Facebook spokesman said that Instagram will initially work closely with a handful of advertisers in each country. Facebook introduced ads within Instagram in the U.S. in November, working with brands such as Levi's and ice cream company Ben and Jerry's.

Instagram said on Monday that the U.S. ads have in some cases generated results "well above the ad industry's average for performance," though it did not provide details.

Ads on Instagram, which has more than 200 million users, are considered an important source of new revenue growth for Facebook, which acquired the popular mobile service for $1 billion in 2012.

Still, Facebook has sought to temper investor expectations of an immediate revenue boost. In April, Facebook Chief Operating Officer Sheryl Sandberg said that the company would take its time rolling out ads on Instagram. "We don't see the need or the urge to ramp this as quickly as we possibly can," Sandberg said.

(Reporting by Alexei Oreskovic; Editing by Bernard Orr)

FILED UNDER:

REUTERS SHOWCASE

Ten Years On

Ten Years On

10 years on, tsunami warning stumbles at the "last mile".  Full Article 

Exit Polls

Exit Polls

BJP unlikely to form Jammu & Kashmir govt - polls.  Full Article 

Forceful Conversions

Forceful Conversions

BJP distances itself from religious conversions.  Full Article 

Hopeful Dhoni

Hopeful Dhoni

India's new vintage nearly ready, says Dhoni.  Full Article 

Photo

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Ali Hospitalized

Ali Hospitalized

Boxing great Muhammad Ali hospitalized with pneumonia.  Full Article 

Going International

Going International

Bollywood’s Priyanka Chopra sets sights on American TV.  Full Article 

India This Week

India This Week

Some of our best photos from this week.   Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device   Full Coverage