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TECHNOLOGY A23
Friday 6 November 2015
As Facebook grows, expect to see more ads on Instagram
BRANDON BAILEY tisers and ad agencies, In this March 25, 2015, file photo, Mark Zuckerberg talks about the Messenger app during the
AP Technology Writer they’re very interested in Facebook F8 Developer Conference in San Francisco. Facebook reports quarterly financial results
SAN FRANCISCO (AP) — If Instagram,” said eMarketer on Wednesday, Nov. 4, 2015.
you’re starting to notice analyst Debra Aho William-
more ads on Instagram, it’s son. Associated Press
all part of Facebook’s plan. One reason: In recent
Facebook, the world’s years, there’s been a de- years, but the company in both video and its grow- fident “there are going to
largest social network, has bate over whether teens is growing more slowly as ing stable of apps and be opportunities” in the fu-
steadily built its advertis- and young adults are for- it gets bigger. That’s led it services, many of which ture.
ing business to become saking Facebook in favor to consider new ways of operate separately from Zuckerberg also cautioned
the world’s second-largest of newer, trendier online showing advertising. the main social network. that it will take time for vir-
digital ad platform after services. But Williamson Facebook is also increas- That includes Instagram, tual reality technology to
Google. Now it’s looking at said young adults are “very ingly introducing new the WhatsApp messaging gain wide adoption. But
ways to make more money visually focused and pretty ways for its users to share app and Oculus VR, which chief operating officer Sh-
from video ads and from heavy users of Instagram.” and watch video on the makes virtual reality gear. eryl Sandberg stressed Ins-
newer services like Insta- Facebook doesn’t disclose social network, position- More than 800 million peo- tagram’s more immediate
gram, the mobile photo- how much of its revenue ing itself against Google’s ple are now using What- potential during the com-
sharing app that it bought comes from Instagram. The popular YouTube service. sApp, the messaging app pany’s quarterly earnings
for $1 billion in 2012. company beat Wall Street CEO Mark Zuckerberg told Facebook bought for $19 call.
Instagram recently an- estimates on Wednesday analysts Wednesday that billion in 2014, and another For advertisers, she boast-
nounced it has over 400 by reporting third-quarter Facebook users are now 700 million people use the ed, Facebook and Insta-
million monthly users, sur- net income of $891 million, watching more than 8 bil- Messenger service that gram are the “two most
passing the 300 million who on revenue of $4.5 billion. lion video clips a day on Facebook developed in- important mobile platforms
use the rival social network- Profit was up 11 percent, the site, up from 4 billion ternally. While the compa- out there.” Instagram offers
ing site Twitter. While Face- while revenue grew 40 per- in April. (Facebook counts ny hasn’t spelled out plans advertisers the same tar-
book has been introduc- cent from the same period any clip played for at least to make money from those geting and measurement
ing Instagram ads slowly a year earlier. 3 seconds as a “view.”) apps, chief financial officer capabilities they can get
— to avoid irritating users More than 1.55 billion peo- Analysts say Facebook has David Wehner told analysts with ads on Facebook, she
by overloading them with ple now visit Facebook at huge, untapped potential Wednesday that he’s con- added.q
commercial messages — least once a month, up 14
the company said in Sep- percent from a year ago.
tember that it would allow Daily users increased by 17
more kinds of ads, includ- percent, to 1.1 billion. As
ing longer video spots, on in previous quarters, Face-
the photo-sharing service. book said a majority of us-
With those new formats, ers are visiting Facebook
Instagram could produce on mobile devices, and
more than $250 million in mobile ads contributed 78
revenue for the current percent of the company’s
quarter, Evercore ISI ana- ad revenue.
lyst Ken Sena estimates. Those results drove Face-
Businesses will spend about book’s stock up more than
$600 million on Instagram 3.5 percent in late trad-
ads this year — and nearly ing, after shares closed
$1.5 billion in 2016, accord- Wednesday at $103.94.
ing to research firm eMar- Facebook has seen contin-
keter. ued growth in revenue and
“When we talk to adver- users over the last three
AOL co-founder Steve Case writing book, ‘Third Wave’
HILLEL ITALIE theory he has been talking phone. In the third wave, In this June 11, 2013 file photo, President and CEO, Revolution
AP National Writer about over the past year. the Internet will transform LLC, and AOL co-founder, Steve Case appears outside of the
NEW YORK (AP) — AOL co- The book’s title is an hom- everyday life, whether civic White House after meeting with President Barack Obama about
founder Steve Case has a age to futurist Alvin Toffler’s activism, government reg- immigration reform in Washington.
book deal. “The Third Wave,” the 1980 ulation to consumer choic-
Simon & Schuster told best-seller that described es. “I thought there was a Associated Press
The Associated Press on the world as entering a need for a framework of
Wednesday that Case’s post-industrial “Informa- where we are,” Case told
“Third Wave” will come tion” age. the AP during a recent in-
out in April. The publisher According to Case, the terview.
is calling the book “part first wave began in the Case, 57, is now chairman
memoir, part manifesto mid-1980s, when AOL and and CEO of Revolution, a
and part playbook of the other companies “laid the Washington, D.C.-based
future.” Case will look back foundation for consum- investment firm that he
on his years with AOL and ers to connect to the In- launched in 2005. He says
the disastrous 2001 merger ternet.” The second wave that for years he’s been
with Time Warner, but will started around 2000 and asked by publishers to
focus on what he believes was defined by the rise of write a book, but that the
is a new wave in the digi- the search engine, social request was for a more
tal era, a “third wave,” a networking and the smart- straightforward memoir. q
