Facebook Inc had for a long time resisted giving advertisement space on Instagram. But when it came down to making real money, Facebook could not resist the temptations and now it is empowering advertisers with more powerful tools: "Shop Now", "Install Now", and "Sign up" buttons; interest and demographic targeting; and an API for efficiently managing huge campaigns on Instagram for this purpose alone, according to Techcrunch.

Facebook Inc's earnings were a staggering $3.5 billion for the first three months of this year.

Instagram is introducing "direct response" ads, which prompt users to buy something, or sign up for something. It is also going to make advertising easy for advertisers as they will be receiving more granular access to the data you generate on Facebook ( Facebook owns Instagram). Besides the above mentioned detail, advertisers will also be allowed to bring in data they possess about your activities outside of Facebook.

There is a big possibility that Instagram is going to show you more ads, says a re/code in an article published on its website.

Ads on Instagram were best for big brands but now it will be much better for direct marketers who want you to do or buy something.

The new format, also called the "action-oriented" formats will be interesting for users. They will appear as buttons below an image and will give users the option to buy a product, install an app or sign up for a service.

A point to note is the new buttons on Instagram when clicked will open a mini-browser within the app, so once you're done buying or downloading or what have you, you'll be back to Instagram again.

Instagram is testing the new format later this week in Spain. 

In a blog post, Instagram has said the new capabilities are being introduced in response to demand from its advertising partners.