Instagram platform ads or revenue-generating $ 700,000,000



According to foreign media reports, since the social networking giant Facebook acquisition of photo sharing service Instagram, outside observers have been concerned about Facebook how to use Instagram to create their own revenue . A few days ago, according to Facebook vice president of global marketing programs Caroline - Everson (Carolyn Everson) Facebook Instagram platform advertising will only be a matter of time. "
"Facebook will eventually find commercial models Instagram applicable. Instagram team is still small, and the lack of experience, but we believe that this application will ultimately bring revenue for Facebook. Now many brands are trying to use Instagram to to attract more customers. So, we are sure to find a corresponding profit mode. "Everson said in an interview.
Facebook announced in April of this year, will spend $ 1 billion cash and stock acquisition of photo sharing application developers Instagram. According to SEC documents show that previously reported, Facebook Total pay Instagram stock and cash of $ 521 million, including approximately 12 million shares of common stock to the Instagram non-employee shareholders, as well as $ 300 million in cash. In addition, Facebook Instagram employees pay 11 million shares of stock, the total price of approximately $ 194 million. Therefore, the Facebook acquisition Instagram final price of $ 715 million, rather than final claim of $ 1 billion. Insiders said that the reason why the actual transactions lower than expected primarily because of Facebook stock price after the IPO in May this year, has shrunk dramatically.
U.S. investment bank Sterne Agee analyst Arvind - Bach Diaz (Arvind Bhatia) and Brett - Manchester Lowther (Brett Strauser) has released a research report, Facebook ads for the company in the next three years in Instagram create 5-700000000 U.S. dollars in advertising revenue, and to expand the margins of Facebook.
Bach Diaz and Manchester Lowther in November this year give Facebook a 32 $ price target, they think Instagram full capacity with Shutterfly photography products and services companies compete. It should be said, Bach Diaz and Manchester Lowther optimism stems partly from Facebook earlier this week, the official data collection as well as the implementation of the new policy of sharing.Facebook on Monday began with Instagram sharing of data, the company will merge the information collected through Instagram and Facebook, and hopes to raise the efficiency of their publish accurate advertising.
In addition, two analysts also pointed out that Instagram recently demonstrated another positive signal Instagram Twitter Cards (Twitter Cards Twitter introduced a new feature that is designed to enhance the user media completely terminated centric experience, news publishers and third-party applications can display photos, videos and text articles) support in Twitter messages. Currently, Instagram has blocked Twitter, though users can still be on Twitter Link Instagram photos, but they would not be able to stream of Twitter messages on the Twitter website and mobile applications to view Instagram photos to Twitter through the increase in the main filters of Instagram function counterattack.
So far, Facebook has not yet announced the Instagram specific business plan.But taking into account the Instagram huge user base and good growth, Facebook is a clear need in this decision-making more careful. We recommend Facebook doing enough testing before gradually for the user to launch an advertising program, in order to avoid causing distress to the user.
Now, Facebook's share price is still higher than the IPO on May 18 the issuance of $ 38 tumbled to about $ 10, but in the most recent period has shown a rebound trend. According to Bloomberg sources, the stock is about to become the constituent stocks of the S & P 500 Index (S & P 500 Index), which means that Facebook will soon become one of the many mutual funds and index funds investment objectives.