Dive Brief:

• Instagram has activated its API (application programming interface), permitting advertisers to schedule campaigns without visiting the photo-sharing platform itself alongside other digital ad buys from Facebook or Twitter.
• Open to third-party platforms, the API will help Instagram expand its utility and importance in mobile advertising. 
• eMarketer estimates that Instagram will be able to generate $2.81 billion in ad sales by 2017, beating out Google and Twitter. 

Dive Insight:

Instagram has created a shortcut to advertising by opening its application programming interface (API) to third-party users, allowing retailers large and small to schedule ads almost automatically rather than having to call an Instagram sales representative. The move is similar to other platforms such as Twitter, Google, and Facebook. Small retailers will no longer need deep pockets and the time to take advantage of the site as a result.

Paired with Facebook’s advanced measurement and targeting features, the move is set to make the photo-sharing app a huge force in mobile advertising. Retailers can now schedule Instagram campaigns alongside other social network campaigns, cross-promoting, planning, and monitoring these various digital ads themselves. Instagram has about 300 million monthly users, according to the parent company, and its ads boast 2.8 times the recall of a typical online ad.

The social network platform announced earlier this month that direct buys from ads will soon be offered for advertisers, which holds huge potential for retailers to ease transaction friction with a clear path-to-purchase.

But Instagram, which traditionally has offered a fairly uncluttered interface, will need to walk a fine line to avoid alienating users with an flurry of new ads. If it can, according to eMarketer, the platform’s revenue potential is staggering.