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Thursday, 6 December 2012 - Instagram's Systrom coy on ad plans, user data |
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See the best of Reuters photography.  See more | Photo caption  Syria's displaced animals A look at animals caught in the crossfire of the Syrian civil war.  Slideshow  Seattle's marijuana experts Voters in Washington state approved an initiative legalizing marijuana. A look inside Canna Pi, a medical marijuana dispensary in Seattle.  Slideshow  Sponsored Links Instagram's Systrom coy on ad plans, user data Tweet Share this Email Print Related News In brewing rivalry, Instagram trims ties to Twitter 3:30pm EST Student group takes Facebook privacy gripes to court Tue, Dec 4 2012 Facebook to share data with Instagram, loosen email rules Wed, Nov 21 2012 Facebook stock jumps 12.6 percent as share lockup expires Wed, Nov 14 2012 Analysis & Opinion A new business model for a new generation of consumers The Facebook Doctrine Related Topics Tech » Instagram co-founder and CEO Kevin Systrom, speaks during a Q&A session at LeWeb 2012 in London June 19, 2012. Credit: Reuters/Luke MacGregor By Matt Cowan PARIS | Wed Dec 5, 2012 3:51pm EST PARIS (Reuters) - Instagram's youthful Chief Executive Kevin Systrom allowed himself a luxury at a Paris technology conference that he never feels comfortable doing in San Francisco: wearing a tie. The founder of the popular photo-sharing app, now owned by Facebook, looks less comfortable when asked whether he'll soon be adding advertising to his service. "We don't have any specific plans to share about advertising yet, mostly because we're focused on growing the company as quickly as possible," Systrom said in an interview with Reuters TV at LeWeb technology conference in Paris. The decision, he conceded, may no longer be his alone. Instagram, which has 100 million users sharing pictures taken on their mobile phones, was acquired by Facebook in April for $1 billion in cash and stock. With Facebook struggling to prove to investors that it can fulfill its much-hyped growth potential and advertising on mobile devices proving particularly tricky, pressure is likely to grow on Systrom to monetize his creation in the near-term. So far, Instagram is still run largely independently from its parent company, Systrom says, but he admits the grown-up world of focusing on the bottom-line may not be far off. "Even from the beginning when we started Instagram, we realized we had to build an independent business, and even within Facebook, we realize we still have to contribute to the business," he says. Some of the value Instagram brings is helping Facebook, which has seen its share price drop about 28 percent since listing in May, think about how its 1 billion users surf the site while on the go from smartphones and tablets. Justin Osofsky, Facebook's platform partnerships director said in an interview, that Facebook was increasingly focused on mobile users. "If you're looking at kind of how we're evolving our product, Facebook has become a mobile-first company." Facebook recently announced a plan to combine user data with Instagram, and eventually bowed to public pressure to hold a vote on the proposed change. Data analysis is widely used by web companies from Google to Facebook to better target ads to users, but the practice is contested by some on-line privacy advocates. Details are scarce on what Facebook actually wants to do with Instagram data, and Systrom didn't provide much insight. "I don't have specifics about the data policy but what I can say is that we are looking to make the user experience better," said Systrom, adding that Facebook's data could be used to fight spam for Instagram users. Facebook is already facing a class-action lawsuit in California that alleges that its Sponsored Stories feature violated California law by publicizing users' "likes" of certain advertisers without paying them or giving them a way to opt out. The case involved over 100 million potential class members. An Austrian student group also recently said it plans to take Facebook to court to try to get it to do more to protect user privacy. Systrom sought to soothe such privacy concerns saying Instagram wasn't setting up a scheme to sell data on its users. "I think what people have to remember is that we always have the best intentions in mind for everyone and data sharing is not something that we focus on in the morning," he said. "When we wake up and we get to work, we're not like, how do we get data to go from one place to the other, we're simply trying to make the services better." Facebook, and its founder Mark Zuckerberg, however is further along than Instagram in terms of seeking to turn its user base into revenue largely via ad sales. David Kirkpatrick, author of the book "The Facebook Effect" that charts the social network's rise, said Zuckerberg had long known that he would have to turn his baby into a real business. "Facebook has evolved to the point where they are willing to accept a degree of intrusion in advertising, although right now their mobile advertising remains too intrusive," said Kirkpatrick. "But their goal is that the ads be perceived as so useful to the moment, the situation and the person" that they are welcomed by the recipient, he said. (Reporting by Matt Cowan; Writing by Leila Abboud; Editing by Tim Dobbyn) Tech Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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