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Tech

Advertisers to flock to Instagram at Twitter's expense

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Opening sequence

Tech

Advertisers to flock to Instagram at Twitter's expense

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COMING UP:Advertisers to flock to Instagram at Twitter's expense

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Transcript

00:00:00
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00:00:01
All the cool kids are flocking to Instagram, and advertisers are taking notice. Next year, for the first time ever, the number of US companies planning to spend their ad dollars on Instagram will outpace that of Twitter, according to research by Emarketer. That research also predicting fewer advertisers will sign up with more established brands like Facebook and Google's YouTube.
00:00:25
But it's not all a loss for Facebook, since it owns Instagram, says Reuters marketing and advertising reporter, Tim Bassinger.>> So, Instagram is gonna be very important to Facebook in 2017. They can use a lot of the same data and technology that Facebook uses, including targeting capabilities that's just a lot bigger than what Twitter has.
00:00:44
>> Facebook's targeted ad-selling machine has quickly become the envy of the web. Last quarter alone, it took in roughly $7 billion from ad sales, which was a 60 percent jump from the same three months in 2015. And it's using that expertise, along with the addition of video, to lure advertisers to the Instagram platform as well.
00:01:06
Twitter, meanwhile, is creating buzz for all the wrong reasons.>> They haven't really been able to grow that business past what it originally was, whereas someone like Facebook, if you remember when it first started out, it was just a college-use social network, and they grew that to such a large-scale business.
00:01:22
Twitter hasn't been able to do that. And having Instagram under them is why Instagram is gonna be growing.>> But Twitter's stumble could serve as a cautionary tale to Instagram. A social media darling today can quickly become passe. And with Snapchat's star rising fast, with an IPO planned for next year, Instagram may not have a whole lot of time to enjoy being the social media world's fastest-growing destination for ad dollars.