Instagram worth $100B—thanks to users spending more time on it
Facebook is reaping the benefits of buying Instagram six years ago.
A recent report revealed that people are spending nearly as much time on
Instagram as they are on Facebook—and the app is also attracting
hard-to-court teenage social media users.
This month, Instagram users in the U.S. spent nearly as much time in the
Android app as Facebook users spent on their app, according to new data
from online measurement company
On average, Instagram users spent 53 minutes per day with the Android app
in June — just five minutes less than Facebook users spent with their app.
Snapchat users spent 49.5 minutes in the Snap app, on average.
In early June,
Pew Research Center revealed
that nearly half of teenagers in the United States are flocking to social
media platforms other than Facebook, including Instagram, Snapchat and
[RELATED: Learn social media secrets from TED, Microsoft, Starbucks and more at Amazon HQ.]
This popularity has made Instagram both popular and lucrative—especially to
If you consider Instagram apart from its parent company, Facebook, the app
would be worth $100 billion—100 times Facebook’s return on
investment—according to a recent Bloomberg report.
Bloomberg Intelligence analyst Jitendra Waral wrote that the photo-sharing
app will “likely help nudge Instagram revenue past $10 billion over the
next 12 months,” and is continuing to attract the younger audiences that
Facebook is losing. Waral also reported that in the next five years,
Instagram will probably reach 2 billion users.
Instagram is also bringing in large amounts of advertising revenue.
Instagram could account for about 16 percent of Facebook’s revenue over the
next year, up from 10.6 percent last year, according to eMarketer data
cited by Bloomberg Intelligence. The unit
the addition of Instagram television, or IGTV, last week as an attempt to
catalyze future growth. Most of Instagram’s 2018 revenue growth will still
likely come from its newsfeed ads, as the TV platform is still developing,
… Instagram is
predicted to generate
$5.5 billion in US ad revenue this year. That’s a whopping 70% more than
last year. The photo-sharing platform will also account for nearly 30% of
Facebook-the-company’s net mobile ad revenue in 2018. By 2020, that number
will be 40%.
Instagram features cater to video
As Instagram continues to grow, it also is adding features and tools to
continue to entice current and potential users—many of them aimed at the
popularity of video content.
On Tuesday, the platform rolled out its video chat and group video chat
features along with its augmented reality stickers.
The Verge reported:
Video chatting can be initiated from the Instagram Direct tab with either
one other person or in a group of up to four people total. It will only
work with people you already have an active Direct thread with, which
requires both parties to respond. Blocking or muting someone will also
disable that person’s ability to video chat with you. The Explore redesign
is also turning the search tab into a topic-focused area where you scroll
through categories like “animals” or “architecture,” as well as trending
teased last month
during Facebook’s F8 conference, video chat is part of Instagram Direct.
You can launch video calls of up to four people from chats in your inbox.
One of the nice features is that the app allows you to multitask while on a
call, so you can keep browsing your feed, or post to your Story, while
Like so many other recent Instagram features, group video calling is
something many of its competitors did first. Snapchat introduced the
and Facebook Messenger has had the feature since 2016. There are also
standalone apps, like Houseparty, which are entirely dedicated to group
video. But, even though they’re late to the game, none of Instagram’s
non-Facebook owned competitors come even close to its size (Instagram just
passed 1 billion users).
Irish Times reported:
The reason Instagram wants to be more like Google-owned YouTube boils down
to this: one billion users is not enough. In order to spur future growth,
and satisfy shareholders in its parent Facebook, it must do something new.
The fact that it has chosen long-form video as its weapon of choice is not
an accident, but a strategy born of real cultural shifts.
“People are watching less TV and more digital video,” Instagram said,
citing eMarketer’s identification of a tipping point among US viewers. “By
2021, mobile video will account for 78 per cent of total mobile data
Though both Instagram and Facebook want users to spend as much time as
possible on the platforms, they’re also working on helping users set time
periods and establish more meaningful experiences.
The Your Time on Facebook feature appears to show you how much time you’ve
spent on the Facebook app over the last seven days. It also shows the
average daily amount of time spent on the app.
This feature also has an ability to offer alerts. That means you can set a
daily limit and if you reach that amount of time, the app will let you know
via your phone’s notifications.
Confirming development of the feature to
TechCrunch, a Facebook spokesperson explained that the team is “always working on new
ways to help make sure people’s time on Facebook is well spent”.
It will also enable users to switch off their notifications for specific
features, such as new posts and direct messages.
Similar tools are also allegedly being trialed for Instagram, with one
Twitter user sharing screenshots of the photo-sharing platform’s “Manage
your time” feature.
How does this news affect your marketing strategies involving Instagram, PR Daily readers?