Social networking sites Facebook earlier on Wednesday reported second-quarter earnings season, despite spending heavily, including 1.2 billion dollars in research and development costs, but the results were still better than expected.
Interesting is that Facebook briefly discusses the new methods of how to profit using Instagram.
Facebook top mentioned, the rest of this year will be slightly convergent spending plan, since the range of previously planned spending $2.7 billion to $3 billion range, down to $2.5 billion to $3 billion range. In April 2012, spent $1 billion buying Instagram after the young startups, Facebook has no other reported Instagram revenues. A year ago Facebook began selling ads on the service, but Facebook seems to fear the advertising industry, prevent advertising from appearing too frequently interrupted Instagram dynamic updates.
Facebook is now slowly towards the direction of enables users to purchase items.
Facebook chief operating officer Sheryl Sandberg said Facebook will expand Instagram ad formats, purchase item features will also be introduced, but she did not provide more details. Sandberg said: "a few months later, more advertisers will have access to Instagram the new format of the ads can target ads, buy online and through third-party groups have functions.
Instagram does not provide specific buy buttons.
AdWeek reported 2 months ago, Gap's upscale apparel goods Banana Republic will be the first show Instagram ads new features, allows marketers make it easier to check out links to Instagram users.
Obviously, Facebook tried to make money from huge Instagram users, but avoid making users happy, and reduce the use of will. Sandberg said that compared with Facebook, Instagram is still relatively small in scale, and has significant influence on Facebook growth, it will take some time.
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