Many disagreed when Facebook CEO Mark Zuckerberg wanted to buy instagram for $ 1 billion in April 2012. It was not until three years later, Citigroup now declare Instagram worth $ 35 billion. It was almost 49 times higher than the value at the time when Facebook bought it with the falls stock price. Even it’s much higher than its rival Twitter and LinkedIn. What cause this good process?
The short answer is “advertising,” it was clear to anyone using Instagram. According to Citigroup analyst Mark May Instagram users rose 40 percent in the years following. It is likely to rise by about 50 percent between March and December this year alone. These analysts believe Instagram will be able to make more money and gain more profits from the advertisers.
It’s been over a year since the ad was introduced in the Instagram app, but May hope with high advertising revenue does not mean you will see more ads. Because, you as the user is entitled to get a more better than Instagram can offer before. So it is unlikely that Facebook will suddenly flooded your feed with ads that do not have any relevant to your interest. May also found Instagram becomes larger, growing rapidly, and more users will be involved. In simple word: Instagram is more suited to advertisers who want to post their ads.
Instead filling all page with ads, Facebook uses user data for the sponsors to get better target more effectively and precisely. A companies will use your Instagram favorite to determine the appropriate type of ads that will get the rights response. Besides, the company can take advantage of many Facebook accounts that connected and setup a target ads based on your profile, what you liked and what makes you interested. Until now Instagram has done a good job. For example, you are not likely to see an ads on the Jet Ski when your age 65 years. You still help provide benefits to a company only to see the ads. But this could be annoying and makes you upset because the ads that are shown that are things that you like.
How often do you use instagram?