In April 2012, Facebook acquired Instagram by signing a check for $ 1 billion. In 2019, Instagram earned him $ 20 billion in advertising revenue. More than a quarter of Mark Zuckerberg’s business income, therefore, comes from the photo-sharing service born in 2010 thanks to Kevin Systrom and Mike Krieger.
The gap is enough to make you dizzy and realize how monumental Instagram has taken place in the Facebook product catalog. Usually, the company does not detail the revenues of each of its platforms, but several sources “close to the matter” have turned to the Bloomberg agency to confirm this figure.
“The worse is yet to come”
When it was bought by Facebook, the social network did not have a monetization mechanism, but eight years later, it is another story. The one who has established herself as a queen among the photo-sharing apps has inserted advertising in the thread of her users, and it pays big. It must be said that with 1 billion Internet users squatting the platform every month, the service has something to make the eye of advertisers.
Instagram’s figures are all the more interesting to analyze since, during its latest quarterly results, the weather was not good at Facebook. The company certainly announced a 25% growth from one year to the next, but expenses also exploded (+ 34%), due in particular to a very large number of hires in the “private life” sector. ”From the firm. According to Techcrunch, the development team now has more than 1,000 people dedicated to this subject. And this is not about to stop since, according to David Wehner, the company’s financial manager, “the worst is yet to come” on this front.
Facebook, huge liner battered
What scares him? The last few turns of Safari and Google Chrome on cookie management, in particular. Internet browser publishers are making advertising targeting increasingly difficult. What gives cold sweats to Facebook. Add to this a climate of mistrust more and more pronounced towards Facebook and a young population that abandons the platform: you then obtain a site that hardly enjoys the confidence of anyone.
With 2.5 billion connections every month, Facebook has become a huge and expensive ocean liner that cannot sail in an infinite ocean. Conversely, WhatsApp, Facebook Messenger, and Instagram still have great growth potential, nice figures to sell to investors and a less damaged image. It is also to take advantage of these pretty figures that the multinational will soon stop revealing the average revenue per user of Facebook in favor of the average revenue per user for all services combined. By mixing everything in one soup, you no longer make a difference.