Instagram is one of the most popular social networks worldwide launched in October 2010. Since its launch, it has developed rapidly, leaving behind competitors like Twitter and Snapchat by evolving fast and embracing new trends. In fact, the iOS and Android mobile application has seen exponential growth and boasts over 50 million users. Seeing this great potential, Facebook has acquired Instagram in 2012 for $1 billion. The first reason why Facebook has acquired because of its committed and consistently developing a mobile user base.
Major Milestones of Instagram
According to Statista recent analysis, the mobile photo-sharing network had reached 1 billion monthly active users as of June 2018, which is up from 800 million in September 2017.
- Funding received by Instagram: $57.5M over 3 rounds
- Company Valuation: More than $100 billion
- Launched in 25 languages
- Got 1 million downloads within two months after launch
With all its achievements, Instagram also holds the title for being one of the biggest, most renowned and profitable platforms for advertisement and marketing. With more than 600 million subscribers and 300 million active users per day, it is the perfect chance to market your brand. In this blog, I am going to give readers an in-depth view of Instagram business model. Keep reading!
About Instagram Business Model
At present, 80 % of accounts follow a business on Instagram. Several leading mobile app development companies have started promoting their mobile app in order to maximize their business review. Instagram’s business strategy is exceptional and developing. I was doing some research on the advertising options that Instagram has and thought it would be great to know how they make money and what is Instagram business model? Let’s explore it here-
Well, it would not be wrong to say that Instagram business model is same since its launch. It’s a free picture sharing mobile application, however, the manner in which it uses its calculation to monetize customers’ attention has developed after some time.
The whole Instagram business concept revolves around several aspects. Have a look at this image-
This picture says it all! Instagram business model empowers individuals to share, explore, and speak with one another on mobile phones. It targets each individual who owns a smartphone, just like the top Android and iOS app development companies do. Well, an important part, which you can see in the image, is crucial to discuss as it is the major source of revenue. The critical source of income for Instagram business model is ‘Advertising’.
They are offering 4 types of Ads to the business owners:
Picture Ads: Instagram enables businesses to market their products by convincing pictures.
Video Ads: You can also add visually appealing video ads, with the power of sight, motion and sound.
Carousel Ads: These types of ads allow users to swipe through a list of photos or videos, with a call-to-action button.
Story Ads: These are full-screen advertisements used by businesses that appear to users in between Stories they see from individuals they follow.
It has been analyzes that promotion on Instagram is winding up progressively. One of the highlights allows promoters to indicate slideshows and connection outside Instagram. This has created a tough competition in the world of social media app development as well.
Key Highlights from Instagram Business Model
Create Your Own Network
Instagram’s strategy was not basically to use existing social networks for sharing but to make its own, network. Instagram’s connections also complement Facebook’s connection exceptionally well, and this is the principle reason behind the enormous valuation.
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Set Your USPs
While making a social photo-sharing app like Instagram, best app developers focus should always be on your Unique Selling Point. What is the objective that you need to accomplish with your application and how it is going to perform in the future, this has to be figured out before beginning with the development procedure.
Focus on Customer-First Approach
Just as Android, iOS and cross-platform app development companies focus on customer-centric apps, Instagram business model follows a customer-first approach by offering easy to understand and engaging features in the app. This is the reason by which its user base is developing with pace. It was not the very first photo-sharing app, but what actually made it stand out was that it is easy to use, and provides real value to photo lovers and photographers.
Think Big to Grow Remarkably
Instagram business model notifies users that you should always plan your business with the most elementary features. This way you can analyze and test your market to make further implementations. Also, the approach will help you to grow remarkably in today’s highly competitive market.
Instagram began as a fun idea without a clear way to earn money, but it has broken all the competitive barriers of social media and now became the best platform for advertising. Businesses reach out to provide users by advertising their services in extraordinary ways. If you are willing to start your own photo sharing business, connect with skilled and professional mobile app developers at Fluper know how they can enable you to develop the next big thing! You can also get free consultation on advertising and marketing for your business app.