Tuesday, November 5, 2013

SOCIAL MEDIA INSIGHTS: Some Marketers Say Instagram Messed Up Its Ad Strategy

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Tuesday, November 5, 2013

Some Marketers Say Instagram Messed Up Its Ad Strategy

*Note: Earlier this morning, a previous edition of Social Media Insights was emailed to you. We apologize for the error. Here is today's news.

Social Media Insights is a daily newsletter from Business Insider Intelligence that collects and delivers the top social media news first thing every morning. You can sign up to receive Social Media Insights here or at the bottom of this post.

bii mk insta Earlier this week, Michael Kors ran the first ad on Instagram with mixed reactions from users. In its first day, the ad accumulated 36,000 likes and more than 300 comments (200 of which were negative). As far as branded advertisements go, we'll admit this one is pretty nice. However, the best creative people from Facebook (which owns Instagram) and Michael Kors likely collaborated extensively on this first ad. Will Facebook be able to maintain the same level of creative control as the Instagram ad platform scales?

Some marketers argue that Instagram is missing a monetization opportunity by favoring big brands over individual users. Instagram is about capturing beautiful moments, not shopping in a mall or catalogue. Brands shouldn't bring stock photos to the platform; instead, Instagram's most talented and influential users should be selling the rights to use their content for advertising.

In Other News …

Sources told Business Insider that Twitter is testing a mobile ad product that will likely compete directly with Facebook's "mobile app install ads." (Business Insider)

The science of how Vine (the company) was launched and how creative marketers are leveraging the art of the six-second clip. (The Guardian)

According to a new Pew Research study, only 8% of U.S. adults get their news through Twitter compared to 30% who do so through Facebook. (Pew Research)

Twitter raised the price target of its IPO to $23-25 per share (the earlier range was $17-$20). (AdExchanger)

Google launched Helpouts, an extension of its Hangouts product. Helpouts were developed with customer service, training, and tutorials specifically in mind. (Google Blog)

IBM sent a letter to Twitter's legal team over patent infringement. (TechCrunch)