1 billion dollars to buy Instagram, Zuckerberg is earning

Two years ago, Facebook bought a start-up company with only 13 employees at $1 billion trillion, an exorbitant amount that was once a question. Two years later, the venture company valued 35 billion dollars.

According to Business Insider, Citigroup analyst Mark May is based on a 35 billion-dollar valuation of Instagram user growth and earnings prospects.

First, the number of Instagram users has exceeded 300 million, or even more than Twitter, active users are Twitter's 1~1.8 times.

The report from Forrester Research, an investigative agency, has the highest level of activity among Instagram users in many social platforms. Compared with Facebook, about 700 of every 1 million followers in a Facebook brand page are willing to praise, leave a message or share, while the average number of people willing to interact with Instagram is 60 times times that of Facebook.

While Instagram's financial contribution to Facebook is still small, Citigroup believes Instagram has the ability to convert user assets into currency assets. If you refer to the current number of users and community activity, Instagram can quickly get 2 billion of dollars in advertising revenue.

In fact, after Facebook acquired Instagram, Zuckerberg did not rush to break up the mobile application team into Facebook, but to keep the structure running independently. From these two years, Instagram and independent companies are not much different.

It was not until October 2013 that Instagram formally launched its advertising-based profit model, first with image ads, including Aridas, Airbnb, Burberry, Ben & Jerry's and Lexus.

Instagram then launched a deep advertising analysis tool for advertisers, including using user Facebook data to pinpoint ads.

In the 2014, Instagram began the process of overseas advertising, in Canada, Australia and the United Kingdom and other countries to advertise for rent.

At the beginning of the year, Instagram, the world's third-largest advertising giant, signed a 40 million-dollar ad deal, with the omnicom of its media and advertising agencies to put the ads in Instagram's photo stream.

In October this year, Instagram launched 15 seconds of video ads for selected four partners.

Given Instagram's advertising potential, Citigroup reckons 2015 Instagram ad revenue could be as high as $2.7 billion trillion. Looking back, Facebook only spent 1 billion of dollars to get a big gold mine.

Instagram's strong potential in advertising is probably related to the product itself. Unlike Twitter, Facebook, and Google +, Instagram is not a pan-life community where the user has a more distinctive personality, a clear preference, and the quality of content publishing. This also makes a brand-name business, through excellent content management, can obtain a better quality user base.

From the content quality of advertising, Instagram is currently in the selection of brand business standards are very strict and abstemious. As far as I am concerned, I sometimes do not exclude Instagram ads, but also like to actively look for some brand advertising, such as Starbucks, Nike and so on. These companies in Instagram advertising, sometimes not even simple to define the ads, they not only contain a lot of creative color, but also with the community atmosphere of a good fusion.

To some extent, advertising is another form of media content, compared to the single manifestation of the text, with more creative potential of the pictures and video is more likely to make the ads close to the nature of the content.