Instagram will start adding adverts to photo streams in America over the next couple of months.
Facebook's online photo and video-sharing service said it has plans to turn itself into a sustainable business.
The advertising services are expected to generate revenue from mobile devices to support more user access for its digital services from wireless devices, Instagram added.
It posted a blog in which it said it will focus on delivering a small number of high-quality photos and videos from a handful of brands that are already members of the Instagram community.
"Our aim is to make any advertisements you see feel as natural to Instagram as the photos and videos many of you already enjoy from your favourite brands," the blog read.
The company also said that its will start the ad service slowly in order to make users comfortable with it.
Instagram said users will be able to hide an ad and provide feedback about it.
In September 2013, Facebook bought Instagram for $715m.