Facebook has bought the advertising technology company Instagram for $1.8 billion.
The news is being closely watched by social media giant’s own ad team, as well as by advertisers that rely on Instagram to promote their campaigns.
The deal also comes at a time when Facebook has struggled to make revenue from the social network, which was recently acquired by Alphabet for $3 billion.
Facebook also purchased Instagram-owned Instagram Labs earlier this year for $2 billion, but it’s unclear whether the deal will result in Instagram moving its advertising operations to Facebook.
Instagram Labs was launched by Facebook in 2013 to help advertisers monetize their content and advertising on Instagram.
Facebook has previously said it would focus its advertising on more than 100 different categories.
Instagram has historically been a much slower-growing company than Facebook, but the social networking giant is reportedly looking to expand into more than 30 other categories, including retail and consumer brands.
Facebook will reportedly use Instagram Labs’ revenue to fund the expansion of its advertising products.
The social network has also hired former Instagram VP and CMO Matt Brittain as an external sales director, which is also part of the deal.
Instagram recently said it was increasing its spending on advertising by $1 billion in 2017, with the company currently spending $3.5 billion on advertising this year.
Instagram also announced a new “Marketing Fund” in 2018, which will allow it to spend up to $10 billion on marketing across its brands in the next year.