Welcome to the crazy digital world that is social media. It’s the sector where one day , there’s nothing but then the next day there’s an all-new business that’s worth billions. The story of Instagram is similar to this. The photo sharing social media hub was created out of the blue and was eventually bought by Facebook for US$1 billion. Now comes the hard part: how will Instagram’s product managers alter things to ensure that Instagram is able to begin making profits… ?
Instagram’s World Today
Instagram happens to be an “app” that runs on both Apple and Android mobile devices. The company has stated its mission statement as “… to capture and share moments around the globe… ” The app achieves this by allowing users to take buy instagram views photos using the camera on their cell phones and share them online.
When Facebook acquired Instagram for $1 billion the company was doing it for only one purpose: to help Facebook expand into the mobile segment. Facebook was trying to grab an enticing share of this expanding market.
Instagram has an active user base of roughly 150M users who all enjoy the app’s clean, cool design , which allows them to easily share their photos. Any change in this could quickly cause users to uninstall the app and search for a different app for sharing photos What went wrong with MySpace?
What Instagram’s Product Managers Can Do
Instagram’s product managers have the real task in front of their managers. The main factor in the success of Instagram is rethink their definition of what a product is and come up with a method to incorporate advertising into their application in a way that doesn’t upset or upset their existing group number of subscribers. One of the first steps that product managers have taken is to catalog all of the brands that are currently using Instagram for free. This is a good attempt and they may include it in their product manager resume.
Product managers are currently talking to the businesses to discuss ways they can make advertising on Instagram even more profitable for them. The challenge that they face is that if the advertisements on the app are to “in your face”, they’ll risk losing their base of customers away.
What is still missing from the toolbox of a product manager’s tricks are the quantitative tools that they will require to make selling ad space successful. These tools will enable advertisers to determine how far they can reach and the efficacy of their Instagram advertisements. The ultimate goal should be to make things easy for the end-users. If they make things too complicated, their product will not be effective.
What All Of This Means For You
There is no doubt about it: Instagram is a hugely popular social media service. But, they face one major issue: right now they don’t have any way to earn a profit. Facebook did not spend $1 billion dollars to buy Instagram just because they liked the way that it looked. They want to make money. Changes need to happen.
Managers of Instagram’s products have a delicate balance that they must strike which was not even mentioned in their job description. They have to preserve Instagram’s sleek design that has attracted 150 million users. On the other, they must begin to add ads so that the company can make revenue. One of the biggest problems is that a lot of companies use Instagram free to promote their services.