Instagram is taking an aggressive approach to monetizing its platform, with the company announcing a $300 million investment in a new ad-tech startup that is aimed at turning Instagram into a powerful advertising platform.
The $300 Million InstaAd platform is owned by Instagram, and will allow users to embed video and other content directly into Instagram posts.
Instagram has been working with the startup for the past year to develop the platform, and Instagram CEO Kevin Systrom said that the company has invested in a “game-changing ad tech startup.”
“Instagram is a leader in connecting with audiences and engaging users across the globe, but we believe there’s more we can do to connect with our audiences and build new relationships,” Systrom told reporters at a press conference Thursday.
“InstaAd is an exciting technology that is designed to help Instagram become a powerful and influential platform for advertisers to reach consumers across a range of verticals.
We look forward to building on the tremendous talent and vision of the InstaGroup team,” he added.
InstaGroup is a group of investors that includes Facebook, Twitter, Google, Amazon, Microsoft, and Zynga.
The company is working on a range.
“We are excited to bring the most powerful ad platform for our users to Instagram,” Instagram cofounder and CEO Kevin Dykstra said in a statement.
“The InstaList team will continue to work with the Instacart team to further improve the mobile experience on Instagram.”
Instagram previously said that InstaApps, an advertising platform for Instagram Stories, were on their way to the platform.
Instagroup has raised $30 million from Accel Partners and Andreessen Horowitz in total, with another $30m raised from the likes of Andreessen and the Microsoft-backed Benchmark Venture Partners.
Instagram is also seeking $250 million in funding from a number of private investors, including Kleiner Perkins, and $1 billion from venture capital firms Andreessen-Wes Anderson and Founders Fund.