Instagram's Business Model

Great Essays
Created in October 2010 by Kevin Systrom and Mike Kreiger, Instagram is an online mobile photo sharing and social networking application service that enables its users to take pictures and videos, and share them. The distinctive feature about Instagram is it confines digital filters that users can apply to their pictures before sharing them on the platform. Like tweets, Instagram pictures are indexed by both @persons and #subject matter. By April 2012, Instagram has accumulated 100 million users, surfacing any social media platform.
I downloaded Instagram two years ago, when I purchased the iPhone 4s. Instagram is a free app available in the Apple App store and Android Play store for Samsung, HTC, etc.
I access my Instagram app minimum three
…show more content…
Beginning this year, Facebook - which acquired Instagram in 2012 for 1 billion dollars- decided the zero profit model should start bringing in revenue, especially that it has developed one of the biggest user databases in social media. Jason Miles, author of “Instagram Power” explains how Instagram gained this much power in just four years. He considered the photo sharing and networking app as "social media lite" meaning that its culture is not very conversational and no one expects you to do much talking or text posting. The social network is technically built on a photo sharing at real time concept; this model sparks distinct triggers in its users, which eventually empowered the Instagram culture. These triggers are emotions stirred by looking at a photo, such as love, desire, and urgency. Miles notes that these triggers are not to manipulate the user’s emotions, but to spark curiosity and encourage sharing. This tactic in shaping people’s emotional response is how Instagram became an influential platform. People spend twenty percent of their time on Facebook accessing pictures, where 250 million pictures are shared everyday! Research shows that if someone opens Instagram, they’re likely to open it eight more times that same day. People tend to believe what they see, and what you see is the soul of Instagram. Systrom – …show more content…
Facebook, Instagram’s management team, employees, and shareholders constitute the inner community; the most influential stakeholders would be the ones in the red circles. Since Instagram is now a part of Facebook’s company, Facebook’s board members make the influential decisions that would directly affect Instagram, in addition to being held accountable to the shareholders. The shareholders play a big role in financing the operations needed for the application, technologies, operations, capital etc. Instagram’s management team also has a lot of weigh since they are held accountable infront of the board members, and its their responsibility to address any problem that could obstruct Instagram’s performance and resolve it. The largest in size stakeholder who also weighs a lot of importance is Instagram’s users. Because of its active hundred million-user base, Instagram carried the price of 1 billion dollars by 2012, only two years after its creation, and now is a prime platform for advertisers. The second group of stakeholders would be the ones in the green circles, they may not directly have an impact on Instagram yet remain important to maintain Instagram’s image and elite rank in the social media channels. Starting with Apple and Android ‘s management teams, there is a dual relationship of power and money between them and Instagram; the application is available in the Apple

Related Documents

  • Improved Essays

    “With the exception of alphabets and number systems, the net well be the single most powerful mind altering technology that has ever come into general use. At the very least, it's the most powerful that has come along since the book”. (Carr,118) While reading the The Shallows- How the Internet is Changing Our Brains, it shows that the internet has changed a lot of how people think today.…

    • 754 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    “Instagram is a photo sharing application that allows users to take a photo, apply a digital filter, then share it on a variety of social networking services, including Instagram’s own.” (Tolentino). Instagram was released on October 6th, 2010 (Instagram). CEO Kevin Systrom and CTO Mike Krieger developed their app in San Francisco, California. “Systrom is responsible for the company's overall vision and strategy as well as day-to-day operations.”…

    • 794 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    The company recently began posting on Instagram and learned some valuable lessons from its early foray into the platform. Many long-established companies seem to view newer platforms as merely a means of delivering their traditional message. “The global aerospace and defense technology company made the initial mistake—as many brands do—of pushing out self-serving content, viewing the platform as another method to showcase pictures of its aircraft and spacecraft.” (Ascierto, 2017) Postings on less traditional platforms need to provide value to consumers and Northrop Grumman found that consumers didn’t find value in similar pictures.…

    • 715 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Instagram is one of the popular self-representation SNS (social networking services) in the world. The pictures are posted with some comments and hashtags. Compared to other SNS such as Twitter and Facebook, Instagram is more picture-centered SNS.…

    • 1034 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Court Case Max Dubler

    • 406 Words
    • 2 Pages

    According to Instagram's Terms of Use, Instagram does not claim ownership of any posted content unlike other platforms. Colorado State University's 2017 "Copyright 101," states that Facebook, Twitter, LinkedIn and You Tube have license to share the intellectual property all over the world without permission or paying royalties. Even terminated an account or deleting a posting will necessarily remove the content in question. The one exception to copyright law is the Fair Use law.…

    • 406 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Theory Explanation Reasoning for creating a social media outlet through Instagram stems from the Social Norms Theory. This theory acknowledges how behavioral change cannot occur if social norms are not considered, which are a group’s beliefs on how others should behave, dictate change. Simply put, members of groups base their decision off others within that group (Schaivo, 2014). The most effective method to accomplishing delivering messages to groups, considering time constraints, is through social media. Health Literacy…

    • 270 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    The Effects of Technology Technology had achieved many different things during the last few years; we have started to rely on more affecting us emotionally, physically, and mentally. For example texting and driving, face to face communication in adults and children, and the reliance on technology. Although these advancements have provided us with extraordinary benefits it has also given us several of unacceptable outcomes. We live in an ever-changing world that has many advantages and disadvantages one of which is texting and driving. According to the National Safety Council they are one million and six hundred accidents a year due to texting and driving.…

    • 1457 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    Following our in-depth study into writing systems in our First Year Seminar class as well as the ways in which writing systems have served their time period, our group collectively created a writing system named Gibba Jabber. Our writing system intends to serve the modern-day society, the 21st century. The 21st century is a century where written communication takes precedent over verbal communication. In other words, texting has replaced the need of phone calls due to the advancement of texting, which has allowed emotions, ideologies and sentences to be conveyed in such fewer words with the help of emoticons. After analyzing modern-day society and its dependence on social media mediums such as twitter and instagram, we came to the understanding…

    • 1327 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    Critical Analysis of Social Media Social media has been used in various contexts to refer to the many forms of web-based platforms and technologies that are used by people globally to interact socially with one another online. Some of the most prominent examples of social media that are commonly used to date are Facebook, Twitter, Youtube, Instagram, Tumblr and Google +, with Facebook, Youtube and Twitter being the most popular, while Pinterest, Tumblr, Instagram LinkedIn being the fastest growing since the year 2014 according to GlobalWebIndex (GWI Device Summary Q3, 2014 Social report). Others include Reddit, LinkedIn, Myspace, and Pinterest. All over the world, the use of social media has been fully integrated into the people’s daily lives…

    • 1870 Words
    • 8 Pages
    Great Essays
  • Decent Essays

    # We Got This Instagram Instagram is the first online mobile photo-sharing and also social network enable photos and videos. It helps shares with the genre called social media with tumblr, facebook, and flickr. Instagram was founded by Kevin Systrom and Mike Krieger that was launched in the 2010. Now, Instagram gain almost 100 millions in the near 2013, and now they are promoting and sharing with apple app store, android and even…

    • 724 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    In today’s modern world, people all around the globe have the ability to connect with each other online through the power of social media. All thanks to one individual, Mark Zuckerberg, who in many ways revolutionized and paved the way for many other social media platforms. Zuckerberg, the founder and CEO of Facebook took the world by storm with his multi-billion-dollar social network of Facebook, and its integral system of “likes” coupled with the ability to post, comment, and share photos and video. Author Ben Mezrich, in his novel The Accidental Billionaires, tells the cunning story of how Zuckerberg took Facebook from a simple college dorm room project at Harvard to a worldwide phenomenon. Mezrich details Facebook’s earliest beginnings…

    • 1027 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Instagram is arguably one of the biggest social media success stories. It started out as a simple photo sharing app that has grown to be integral to everyday life. When Instagram launched in October of 2010, it had 1 million users by December of that year and would only get bigger. By the time Facebook would acquire the company in 2012, it had more than 10 million users. Pictures of food, nature, dogs, and sunsets suddenly became art with just a filter and a clever hashtag, available for anyone in the world to see and click the precious ‘like’ button.…

    • 829 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Sephora Swot Analysis

    • 791 Words
    • 4 Pages

    Twitter is used very effectively in raising awareness for products, contests and promotions with the use of hashtags that are then re-tweeted by customers, reaching a broader audience. One specific use of Twitter is to serve as a customer service portal. There are multiple questions and complaints answered on a daily basis, enhancing the perception of responsiveness by Sephora to the eyes of the clients. Instagram Instagram is an important tool for Sephora, one that enables the company to communicate visually with its 4.4 million followers on the latest trends and sneak peek of new lines. Additionally, it’s an important tool to leverage celebrities wearing their products, in order to inspire potential customers.…

    • 791 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    History Facebook is a well-known social media platform that has worked its way into our daily lives as a source of keeping in contact with our friends, family, co-workers, and even enemies. Although it is important to point out, Facebook has not always been what it is today. The company started in 2004 and was merely a questionable social platform which Niels Brügger (2015) described as “unknown territory.” (1. Introduction). Eventually people started to switch from MySpace to Facebook as their social media source.…

    • 1241 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Social Media Trends

    • 1328 Words
    • 5 Pages

    However, social media providers are basically being urged to get more subscribers such as young people due to high competition. For example, Snapchat might have a unique way to be used by a company, so that it came up with announcing the nominees of MTV’s Video Music Awards on its platform. By contrast, LinkedIn, another social network characterized for businesses, is growing to be a primary business…

    • 1328 Words
    • 5 Pages
    Great Essays