Talk about a sound investment: Video advertising on Instagram could earn Facebook a lot of money.
Facebook’s $1 billion acquisition of Instagram sure seems to be paying off: A new report indicates that Instagram is well on its way to becoming a $1.8 billion to $3.7 billion a year business over the next few years, and that the photo-sharing app is already worth more than a billion dollars. MoffettNathanson, the research firm that compiled the report, also sees Instagram becoming a huge advertising cash cow for parent company Facebook.
