Is Instagram Another Path to Riches for Facebook? - NYTimes.com
If Instagram were to turn up the volume on e-commerce and advertising — imagine a click-to-buy button on that photo of Louboutin shoes — well, let’s just say that would be Instamoney. (L2 predicts that Instagram will generate $250 million to $400 million in revenue this year.)
Instagram is already generating real revenue for brands, according to Pau Sabria, co-founder of Olapic. His firm helps companies like American Eagle Outfitters, Lancôme, Coach and West Elm to solicit photos of their products being used by ordinary people and then post them on retail sites as a supplement to staged catalog shots.
He said that by adding such user-generated photos to a retail site, the number of visitors who turn into buyers increased by 5 to 7 percent and the average order value rose by 2 percent.