In 2010, a San Francisco based company burst onto the social media scene with their immensely popular photo sharing app, Instagram. Instagram showed remarkable figures for adoption rate, and Facebook did not want to lose out to another company. Zuckerberg may have been worried as to what Instagram could potentially become, so much so that he purchased the company.
Facebook purchased Instagram on April 9th, 2012 for a total of $1 billion (in a mixture of cash and shares). Speculation arose to as why Facebook bought the San Francisco based photo sharing company. Was Facebook afraid that Instagram would surpass Facebook in photo sharing alone? Or were they looking into securing Instagram for a future strategic plan? Personally, I think it may have been both.
Image via geektyrant.com
Twitter has been a fierce competitor for years now. They serve as a great place for sharing links, photos, and now recently videos thanks to it’s video product Vine. Vine has just launched a thank you blog regarding their recent success. Here is what they said,
“This is just the beginning. Over the next few weeks, we’ll be introducing some exciting new parts of Vine. As always, we’ll share details on updates as we release them.”
Facebook also plans on releasing new features, as they have already introduced the use of a hashtag on their social media site. Facebook is holding a press conference tomorrow regarding Instagram and possible video integration. This move seems to combat against Twitter’s Vine in the race to the top of social video sharing. Each one of these social networks (Facebook and Twitter) want to accomplish the “trifecta” – which is made up of news, photos, and videos. There is many speculation around Facebook releasing an Instagram video service at tomorrows conference held at their California headquarters.
But what if this adoption of mobile video sharing also brings advertisements to it’s users? We all know Facebook’s stock has been plumitting and they are looking for new means of revenue. Facebook has announced that there are now over 1 million advertisers on their social media site. This seems like a lot, but not enough considering how many people are on Facebook. I’m not sure exactly how advertising would take place through this Facebook and Instagram video integration, but there is a high possibility of it happening. There might not be advertisements before watching videos, but maybe companies paying Facebook to have sponsored videos for more views. Either way, incorporating social sharing video services are likely to creating extra avenues for revenue through advertising. Exactly what the Doctor…Zuckerberg…ordered.