Instagram doesn't have ads, but it's making Facebook money

08/8/2013 | Advertising Age (tiered subscription model)

Facebook is already making money from Instagram, even though the service doesn't yet have advertising, James Borow writes. That's because brands pay to cross-promote their Instagram content on Facebook, boosting the social network's overall revenues. "Down the line, advertising directly on Instagram may become a huge moneymaker, but for now it's all about capturing and sharing the world's moments -- and paying to distribute them on the world's largest social network," Borow writes.

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