Facebook has followed a careful plan since the Instagram acquisition. First, grow the platform user base, then begin to test monetization carefully in order to avoid alienating users. This has been successful thus far, and now FB has reached the point of
opening Instagram to more ad units to accelerate monetization. This will continue to ramp.
This has been a major area of focus for FB, as the company continues to make inroads into brand-based (particularly video) advertising. By improving advertisers? ability to measure the results from this type of ad campaign, FB intends to demonstrate that the ROI is there to support higher level of brand-based ad spending on the platform.
On execution, FB has amassed a very strong record since the launch of the mobile Newsfeed ad unit in 2012. Management continues to carefully test new monetization plans before broad implementation, to ensure that users are not alienated; clearly the team understands that the scale and engagement of the user base is the most important issue for FB?s LT growth
