A commitment rate humiliating that of Facebook (1.53% against 0.1 for FB), close communication, and emotion through images. Here is the Instagram recipe, it was still necessary to find the right business model that does not distort the concept. The choice is very simple, advertising. It must be said that the audience makes it possible to consider it serenely. Then the marks had to be removed. So easy. The image is the most shared content on the internet. No language barrier, instantaneous, the image is the ideal format for brands. It is not for nothing that Pinterest, Snapchat, and other Tumblr are also experiencing growing success.
It was therefore necessary to think about the integration of advertisements without disturbing the user experience. In an interview with NouvelObs, Kevin Systrom, CEO of Instagram explains “Instagram was always meant to be a business and we wanted to make sure we generated enough revenue to continue investing in the app. People spend 21 minutes on Instagram per day on average. Our challenge is to deliver quality ads that are relevant and as interesting as possible.” And even if it is not said openly a glamorous advertisement.
3 years ago, Instagram doesn’t earn a penny. Yet with this model Instagram could, this year, generate nearly 2 billion dollars in turnover, thanks to advertising alone, according to RBC Capital Markets, and pass the bar of 500 million active users.
How does the business model change things?
Between complaints from users who do not understand the appearance of ads in their feed and the opening of publication formats, while the square photo was the very emblem of Instagram, the brand must constantly adjust what it offers. so as not to scare its users to another platform. Snapchat, for example, which has been the most used photo exchange channel for teenagers for a while now. Surely because they think they can send each other naked photos without risk.
In addition, Instagram had to face a very disturbing controversy, a young Australian woman who was "professional" decided to say loud and clear that Instagram was nothing but a lie and an embellishment of a life that was not always rosy. If you too thought that Instagrammers spent their time eating watermelon, working out, and going out to 4-star restaurants, you were wrong. Brands create scenes with which people identify without limits.
Finally, the massive use of Instagram by Facebook users raises a question. That of transparency between the two firms. Facebook collects several incredible data thanks to Instagram; Facebook knows for example that it is in Little Italy in New York that there are the most photos of Pizza posted. At first glance, it seems futile, yet they will use this data to sell you as many services and advertisements as possible.