Here's the key language:
"At this time, we're focused mainly on product development and are not pursuing marketing or advertising opportunities. This may change as Instagram grows and we expand our team, and we look forward to working with you then."
This one's a no-brainer. Of course ads will come to Instagram.
Instagram has amassed 100+ million users in two years. It's a beautiful visual service. Why on earth would advertisers NOT want to take advantage of that?
Source: http://www.businessinsider.com/instagram-ads-2012-11
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