The direction Instagram is going is similar to what Facebook does already with what I'll call "endorsement advertising".
I've noticed ads where it says something like "your friend Dave likes Verizon", with a clear link to an ad. I then ask Dave if he recently "Liked" verizon and he says "No, but maybe a year ago or something for a contest". So they are selling our likes as endorsements to brands already.
Instagram wants to do this with photos, I expect. A photo of you driving a Prius might link to a Toyota brand page after you follow the Toyota instagram profile, for example.
I've noticed ads where it says something like "your friend Dave likes Verizon", with a clear link to an ad. I then ask Dave if he recently "Liked" verizon and he says "No, but maybe a year ago or something for a contest". So they are selling our likes as endorsements to brands already.
Instagram wants to do this with photos, I expect. A photo of you driving a Prius might link to a Toyota brand page after you follow the Toyota instagram profile, for example.