Advertisers Don't Care If Instagram's Popularity Dips

Instagram and its parent company Facebook Inc FB are sitting in an enviable position in the social media landscape.

A report surfaced on Thursday that suggested that the number of photos and videos that user post on Instagram fell between 2013 and 2015 at a time when its user base grew.

Luckily, advertisers don't seem to care, at least according to CNBC's Michelle Castillo. She stated various marketing executives are unlikely to cut back their advertising dollars on the social media platform.

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Instagram sells ads based on the number of viewers and not the number of posts upload to the platform. As such a decline in user posting activity won't impact a marketer's business model.

The problem arises when the number of hours spent online by users begins to decrease — something the social media platform isn't experiencing.

"More users will always bring a decline in average shares or posts per user, on any social network," William de Lannoy, director of communications strategy at creative media agency Noble People told CNBC. "The early adopters were people that wanted to share photos. The late comers are more likely to just want to view those photos. And, having more of them is a good thing, because the platform is more about consuming photos than it is sharing them, anyway."

Finally, Instagram recently made its platform more appealing to marketers by offering access to targeting and algorithm information, similar to what is offered on Facebook's core platform.