Social media websites are as diverse and unpredictable as society itself. Today’s dominant force in social media could be tomorrow’s washed up product. MySpace is a good example of a dominant social networking website that soon fell under the might of Mack Zuckerberg’s Facebook. At one point in time, MySpace was the most visited social networking website in the world. In June 2006, the website even surpassed Google in terms of web visitors. Currently, MySpace ranks at three hundred and three in terms of total web traffic in the world.
The same kind of negative turnaround could happen to Facebook, which is now facing a myriad of serious challenges. For example, Facebook does not have a mobile platform unlike Google Plus that has Android to back it up. Twitter, on the other hand, seems to be integrating well with Apple’s iOS. This means that Facebook might fail in the lucrative mobile ad market if it does not find a viable and sustainable platform to work on.
It is important to note that over thirty percent of Facebook’s revenue already comes from the mobile ad market. This kind of reliance on a mobile ad market without a platform to increase its functionality may be Facebook’s undoing. Luckily, Facebook now has Instagram. This relatively new acquisition may just turnaround Facebook’s fortune.
The Success and Dominance of Instagram in Its Niche Market
Instagram is an online service that allows users to share photos and videos to various social networks such as Facebook, Tumblr, Flickr and Twitter. Originally, this service was only available through an iOS. In April 2012, the service become available on Android operating systems and is now available on a Windows Phone. Instagram has more than one hundred million users. In fact, the October 2010 start-up had an excess of one hundred and fifty million monthly users as at September 9th, 2013.
Importance of Instagram to Facebook
Social media websites rely on advertising for revenue and Facebook is no exception. Instagram will allow Facebook to increase its revenue astronomically. This is because advertisers are more willing to advertise on Instagram than on any other social networking website. This is because of the quality of ads that Instagram provides.
More specifically, ads on Instagram are photo-centric but with a high potential for video advertising. These advertisements communicate instantly to consumers without disrupting their experience on social media. Photo and video advertisements are also more likely to turn into actual sales than conventional advertisements.
It is also important to note that all of the major mobile operating systems i.e. iOS, Android and Windows Phone have well-integrated Instagram apps. This allows Facebook to reach the lucrative mobile ad market without having to develop its own platform. More importantly, Facebook does not have to worry about competition on these mobile platforms because Instagram is dominant in its market niche. In other words, increased functionality between Android and Google Plus or iOS and Twitter may harm Facebook but it will not harm Instagram.