The internet is of course full of meteoric rises, small web sites suddenly rising from nowhere to become global brands. These stories are not quite as common as they used to be and nowadays for every one site or application that makes a success there are a myriad of well-funded failures that we’ll never even hear of.
Probably the biggest success story of the last year or so is that of Instagram, the social media site which is growing exponentially especially among the younger generation. It’s audience is young, socially active and numbers over one billion active users. The fact that those users are active is crucial, there are millions of websites with massive amounts of users but if they don’t engage they are of limited value as far as the value of the company is concerned.
Take for instance the previous two ‘stellar’ performers in the social media market – Facebook and Snapchat. Both of these have seen their growth pretty much stagnate and worse many users are leaving their accounts inactive and moving to other platforms. Younger users in particularly are abandoning Facebook in their droves, moving to sites like Instagram and leaving their accounts dormant.
It’s not all bad news for Facebook though as they bought the Instagram platform a few years ago at what now seems like quite a reasonable price. However Instagram has the usual problem to overcome with these wildly popular social media platforms – how to make money from them. No-one is sure how much money Instagram currently makes out of advertising revenue. It’s true though that many people already make their livings out of the platform already – running thousands of accounts by utilizing private proxies for instagram. Many of them use the platform to promote products, goods and services which appeal to the youth market.
Instagram is likely to become more and more important to Facebook if the growth levels continue at the same rate. The growth of Facebook is around 3% whereas Instagram has just crossed 5% and shows no signs of slowing just yet. There are reports that suggest that Instagram already accounts for nearly 30 of Facebook’s advertising revenue although only on the mobile platform
It’s this success on mobile phones that is largely responsible for Instagram’s amazing growth. It started as a very simple photo sharing site but has since developed into a full scale multimedia social platform.
If the fortunes of Facebook continue to decline especially combined with all the security and privacy issues they face, Instagram is likely to become much more important. Many people are probably unaware that Facebook even own Instagram but that doesn’t stop the photo sharing application become more and more popular.
Many experts believe that the platform offers more potential than Facebook being more suited to selling products and services. It’s certainly more suited than traditional online media and most of the commercial TV stations are very wary of it’s success. You can see some interesting reports on the current growth rates and economic forecasts on the mainstream media. Check out channels like the BBC for more up to date information, you can access it for free outside the UK by using a BBC iPlayer DNS solution at least temporarily although this is not required for people in the UK.