Instagram hits 500,000 advertisers despite strong competition

Facebook-owned social media site Instagram has doubled its number of advertisers to 500,000 in just six months, as companies bank on its increased popularity.

Previously used by advertisers for restaurant groups and clothing, the app is now being used by a more diverse range of brands to showcase their products.

The picture sharing app has more than 500 million users, and combined with owner Facebook's ad technology is becoming an increasingly attractive prospect. Mark Zuckerberg's company bought Instagram in 2012 for $1bn.

Instagram COO Marne Levine said that the majority of advertisers still come from small businesses, despite the presence of most of the world's top brands.

The app faces severe competition in a saturated social media market, but appears to be outperforming the likes of Twitter, which currently only has around 100,000 advertisers.

Facebook is yet to announce the figures of Instagram’s ad revenue, but experts have said it is already a massive business, with some reporting that as much as $3.2bn of revenue was taken in this year.