Facebook-owned Instagram said it has more than one million active advertisers in the platform and will unveil new features in a few months. The photo and video sharing app is becoming a driver of Facebook’s growth. Instagram on Wednesday said 8 million companies are using its business profile now, while active advertisers grew 500 percent to 1 million, up from just 200,000 a year earlier.
The number is amazing as its Owner Facebook has 400 million active advertisers, while its rival Twitter has only 130,000 advertisers. Instagram said it now has 600 million monthly users and 80 percent of them had follow a business on the platform.
"If you're a small business, Instagram is a place where people are seeking passion," Instagram vice president of business James Quarles said. "Eighty percent of people on Instagram follow a business."
Recent key features like Stories helped boost the growth of Instagram and better compete with Snapchat. The Stories feature provides additional way for small advertisers to put their own video ads.
Instagram said more features will be launched this year, including directly book services like haircuts. Social and digital media is becoming more popular. Advertisers is increasing their ad budget in digital channels. Many social media companies are competing for the market shares, including Facebook, Twitter and Snapchat. Facebook is the leader in the market, but it warned its ad revenue growth would slowdown this year. Instagram could become the new engine of growth for Facebook.