Instagram, a favorite among young people
The purchase of Instagram by Facebook two years ago surprised. 740 million euros ($1 billion) for a service which only could upload photos after passing them through a filter. The time seems to have given the reason to Zuckberberg. While its main service loses more and more interest, Instagram has become the social network preferred by young people.
Piper Jaffray consultant has just published a report based on a survey to 5,000 adolescents in the United States in which evidence is the growth of the invention of Kevin Systrom. Gene Munster, director of the firm, excelled it the interest that they have in video games or brands such as Apple: “we have seen how in the last six months Instagram has risen from 27 to 30%, compared to Facebook which goes from 27 to 23%”. Only a year ago, this same study, put Facebook at 33%.
Instagram has 200 million monthly active users, although it still lacks a system of advertising or business model with some form of payment from advertisers, brands and customers.
Facebook is alleviating this loss of interest with the purchase of fashion companies. In February they bought WhatsApp, the leading messaging in Europe. Later, Oculus VR, whose maximum value is a prototype glasses that recreate a virtual reality.
Instagram photos to include advertising
The 150 million people who send photos or videos with Instagram will see in the coming months to start them off to get images with advertising. Application bought by Facebook a year ago has advised him on his own blog and announces that “we have big ideas for the future and one of them is make sustainable business”.
The first one is to insert advertising to the faithful. It will begin in the coming months in United States and “little by little”, as it prevents the company, aware of the controversy that will raise. And sells it as well: “We will start sending a small number of photos and videos, beautiful and high-quality brands that are already members of the community Instagram”.
The explanation is long, indicating that managers see coming protests. “Our team not only has built Instagram, also uses it every day and we want these ads as pleasant and creative in the same way that you see advertising of quality when you browse a magazine.”
The company warns that user will continue to have control of the mechanism and, of course, will “remain the owner of your photos and your videos. If you see an advertisement you do not like, you can hide it and tell us why you did not like.”
Instagram is the latest social network, although in this case it is an application of filters for images, which seeks to make the most of your traffic and users with advertising insertion, only way to get income since the application is free. Advertisers will spend this year on social networks 10 billion dollars, according to eMarketer. Global spending on mobile advertising will this year, according to the same source to 8.8 billion and Instagram (Facebook) you want to part of the cake. In fact, in the last quarter, 41% of revenues of Facebook came to him through mobile devices, when the previous quarter was 30%. As a result, the action of the social network is listed to their highest levels since it started in bag.
The last year, Facebook acquired Instagram billion dollars in cash, which was very surprised since the application, then with two years of life, had no income whatsoever, only traffic. Facebook will now draw party of it. Some users and even celebrities are getting more instagram followers by purchasing them online, this is prompting Instagram to crackdown on fake followers that are starting to plague the website with spam.