At the time of the acquisition, the platform was valued at half the purchase price, had 30 million users, and was not generating revenue. People of almost every background and walk of life are represented on Instagram -- making it prime territory for targeted advertising. Ultimately, Instagram advertising is a fascinating process that involves competition, calculation, capital, and strategy.
Ultimately, objectives always revolve around improving brand awareness, driving consideration, or converting potential leads. The amount of money it takes to win that auction is going to vary depending on demographics, time constraints, or strategic placement within the app. A clothing brand selling pleated khakis and golf shirts will register more with mature prospects watching PGA Tour videos….
