Daily Management Review

Instagram Draws Ahead of Twitter


09/24/2015


The Instagram’s audience has exceeded 400 million, Reuters reports citing a statement by the company. It seems that Facebook's strategy for the development and maintenance of the photo service is paid off.



tylerlawrence.com
tylerlawrence.com
This result was achieved in less than a year after the number of Instagram’s subscribers reached 300 million people. 75% of people, who use the service, live outside the US, and more than half of the last 100 million have been registered from Europe and Asia.

The size of the Instagram’s audience exceed microblogging service Twitter, for which there are about 320 million active monthly subscribers. Currently, Instagram users are placing 80 million photos every day.

Note that Facebook often experiments and does not always cling to the ideas that are not sufficiently popular. The company says that the main direction of Instagram’s development is to attract new users, so the photo service listens to feedback, and trying not to contradict the wishes of users.

Recall that in late 2013, first advertising banners with a still image appeared on Instagram. In 2014, the service launched promotional videos. Later, Facebook has decided to test a new advertising idea - the monetization of the portal was enhanced by the so-called "Carousel Ads".

The idea is to allow the Instagram’s partners to arrange campaigns in the format most in demand within the service. Typically, users browse the pages of each other, studying not one single image, but quickly switching between photo series and liking favorites. Advertisers still had to place banners of classic design that cannot be examined in details without going to an outside resource. Carousel ads solves this problem, as the resource may consist of a series of images, between which one can freely switch without redirection.

Meanwhile, Facebook itself has set a record for attendance. The founder and CEO of the worldwide social network Mark Zuckerberg said in late August that its brainchild is now enjoyed by every seventh inhabitant of our planet.

In II quarter 2015, Facebook's revenue increased by 39% compared to the result of a year ago, reaching 4.04 billion. Net profit for the period fell by 9.1% from $ 791 million to $ 719 million. Adjusted earnings amounted to 50 cents per share, 3 cents more than analysts had expected. Polled by Thomson Reuters experts predicted revenue of $ 3.99 billion.

The costs of social networks has increased significantly. In April-June, they jumped 82% to $ 2.8 billion. Facebook's direction has warned investors in advance that the company's costs will continue to grow, so it's not a big surprise.

Facebook invests in long-term projects related to virtual reality. In addition, Mark Zuckerberg’s company spent a significant amount of money on the construction of new data centers and attracting talented engineers. Sales of Facebook in the II quarter increased 43% year over year to $ 3.8 billion. Approximately 76% of this amount - income from advertisements placed in the services and applications for mobile devices.

According to the forecasts of eMarketer researchers, in 2015, Facebook will control 16% of the global mobile advertising market, which is estimated at $ 69 billion. Google will keep the leadership with 35% result, experts expect.

It is also noted that the activity of Facebook users continues to grow. In the second quarter of this year, the number of social network users that visit its pages at least once a month, rose to 1.49 billion from 1.33 billion in January-March. The daily audience of active service for the period rose to 968 million users to 936 million. The number of active mobile users of Facebook in the last month has increased year on year by 23% to 1.31 billion.

source: reuters.com