Skip to content.

Guest comment: How Facebook's Instagram acquisition will impact social sharing

Facebook’s $1bn acquisition of Instagram startled the digital industry, but what does the future hold for the popular photo app? Rupert Staines, European MD of RadiumOne, examines the potential effect on social sharing and the backlash Facebook is facing from the Instagram community.

rupert%20staines%20radiumone.jpg

Although $1billion is a huge amount of money to pay for one company, the investment is reflective of the sharing phenomenon that has taken the Internet by storm over the past year (nma.co.uk 10 April 2012). Today, the Internet is no longer a place to visit in order to just collate and gather information, but a platform which consumers primarily use to connect with friends and peers and share ideas and content.

Last year, Mark Zuckerberg observed that online sharing is growing at an exponential rate with four billion things being shared per day. A “share” should be considered anything from an email, a cut and paste, a shortened URL, or, of course, a photo, and as sharing is fast becoming the currency of the internet, it was natural for Facebook to further embrace the phenomenon. As it gains an estimated 27 extra million users from its new purchase, all eyes will be on how Facebook will take advantage of the increased sharing activity, as well as its access to a new pool of targets.

Equally interesting will be how Facebook deals with the major backlash it’s receiving from Instagram users. No sooner had Mark Zuckerberg published his blog post announcing the acquisition, than users were closing their accounts in droves, voicing fears that their feeds will be flooded with advertising. Understandably, this could prove to be a major headache for Facebook, but it would appear necessary if it’s to reach its valuation.

While assumptions have been made that Facebook is looking to knock out the competition, there is a more serious issue around justifying its valuation in world that is becoming increasingly mobile focused. Facebook made a staggering $4billion from advertising last year, but it has a potential valuation with the imminent IPO, of $95billiion. It has to validate this somehow and one of the key ways to meet this astronomical figure is naturally through advertising. However, the problem facing Mr Zuckerberg is that, despite it being a colossus of the Internet, Facebook remains a walled garden – it can only reach the consumers within its perimeters, and this could prove to be highly restrictive. Of course, its consumers can be targeted in a relevant fashion, but in order to foster engagement (and meet this valuation), it’s likely that the level of advertising will have to be intense. This is why social targeting across the entire web (which represents roughly the remaining 90% of Internet use) is more favourable. It’s not as saturated, but it remains relevant to the user in question.

The other concern for Facebook is that alternatives to Instagram do exist. Hipstamatic, Incredibooth and Via.me are just a few of the independent photo sharing sites on the market ready and waiting to attract those users looking to defect from their preferred service.

However, consumers should remember that targeting has becoming common place now and, after all, Facebook made its name through the sharing of photography. Providing Facebook doesn’t saturate its new Instagram audience with an abundance of adverts, this could well be a nifty move on its part.

By Rupert Staines
European managing director
RadiumOne

www.radiumone.com/

Comments
calvinbrock735 commented:

I read this article. I think You put a lot of effort to create this article. I appreciate your work. perfumes mardrid

calvinbrock735 commented:

I should say only that its awesome! The blog is informational and always produce amazing things. accessoires wiko

calvinbrock735 commented:

You have raised an important issue..Thanks for sharing..I would like to read m ore current affairs from this blog..keep posting.. daftar harga notebook

josep commented:

Equally interesting will be how Facebook deals with the major backlash it’s receiving from Instagram users foundation repair san antonio

william commented:

how many times did you see the blue whale "We're over capacity come back later" how many errors were there on Instagram with more users in a shorter space of time - there's the answer. food storage

calvinbrock735 commented:

You have done a great job. I will definitely dig it and personally recommend to my friends. I am confident they will be benefited from this site. Ganoderma

calvinbrock735 commented:

I must say, I thought this was a pretty interesting read when it comes to this topic. Liked the material. . . . . http://blackfridaymattress.samenblog.com/1/

idée cadeau homme commented:

Great post! I am actually getting ready to across this information, is very helpful my friend. Also great blog here with all of the valuable information you have. Keep up the good work you are doing here.
idée cadeau homme

cadeau femme commented:

I would also motivate just about every person to save this web page for any favorite assistance to assist posted the appearance.
cadeau femme

cadeau commented:

it's really nice and meanful. it's really cool blog. Linking is very useful thing.you have really helped lots of people who visit blog and provide them usefull information.
cadeau

cadeaux originaux commented:

Very informative post! There is a lot of information here that can help any business get started with a successful social networking campaign!
cadeaux">http://www.cadeauxfolies.fr/">cadeaux originaux

calvinbrock735 commented:

wow this good but ,I like your post and good pics may be any peoples not like because defrent mind all poeple , cadeau de noël

garcinia cambogia extract commented:

Now, that was an interesting post there. The t-shirt looks just awesome and I loved the color and the font as well.

garcinia cambogia extract

Yacon syrup reviews commented:

I am very delightful to you for this wonderful article. Please keep us updated like this and provide us same great information.
Yacon syrup reviews

william commented:

is is no fault of their own as users, marketers and most people only see the chasis of the car but rarely look under the bonnet, if you catch my drift... invisible dog fence installation instructions

Garcinia Cambogia Canada commented:

Its a great pleasure reading your post.Its full of information I am looking for and I love to post a comment that "The content of your post is awesome" Great work.
Garcinia Cambogia Canada

Chelsi commented:

free online car insurance quotes

finance jobs in dubai commented:

I will get straight back to you with a quote once I have done my research. Thanks to the blog writer for posting such a masterpiece.

finance jobs in dubai

Betty commented:

cheapest car to insure

Barbie commented:

car insurance online today

Garcinia Cambogia commented:

Thanks for such an interesting article here. I was searching for something like that for quite a long time and at last I have found it here.
Garcinia Cambogia

calvinbrock735 commented:

Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained! earn profits online with this website

josep commented:

While assumptions have been made that Facebook is looking to knock out the competition, there is a more serious issue around justifying juicer reviews

Good experience with our services commented:

Very nice post. I just stumbled upon your weblog and wished to say that I have truly enjoyed surfing around your blog posts. After all I
Good experience with our services

calvinbrock735 commented:

Hmm… I read blogs on a similar topic, but i never visited your blog. I added it to favorites and i’ll be your constant reader. Search Engine Marketing

william commented:

Your article shows you have a lot of background in this topic visit website. Can you direct me to other articles about this? I will recommend this article to my friends as well. Thanks

online taarten bestellen commented:

You have raised an important issue..Thanks for sharing..I would like to read more current affairs from this blog..keep posting..
online taarten bestellen

josep commented:

Facebook will take advantage of the increased sharing activity, as well as its access to a new pool of targets. maori

Online Dating commented:

Wow, nice post,there are many person searching about that now they will find enough resources by your post.Thank you for sharing to us.Please one more post about that.
Online Dating

william commented:

Instagram for the content or the users (Although a massive bonus!) but for the technology and the infrastructure that Instagram has. 3d logo

josep commented:

This is no fault of their own as users, marketers and most people only see the chasis of the car but rarely look under the bonnet, if you catch my drift. Schnarchen

william commented:

. This is no fault of their own as users, marketers and most people only see the chasis of the car but rarely look under the bonnet, if you catch my drift... tatuaggi

josep commented:

Understandably, this could prove to be a major headache for Facebook, but it would appear necessary if it’s to reach its valuation.Marco Agency

william commented:

how many times did you see the blue whale "We're over capacity come back later" how many errors were there on Instagram with more users in a shorter space of time - there's the answer. kratom leaves for sale

josep commented:

MD of RadiumOne, examines the potential effect on social sharing and the backlash Facebook is facing from the Instagram community. MarcoPay

josep commented:

Equally interesting will be how Facebook deals with the major backlash it’s receiving from Instagram users. tribali

josep commented:

Equally interesting will be how Facebook deals with the major backlash it’s receiving from Instagram users. phlebotomy training

william commented:

how many times did you see the blue whale "We're over capacity come back later" how many errors were there on Instagram with more users in a shorter space of time - there's the answer. Semen Volume Increase

william commented:

photos, video clips and quotation to my friends. Actually many bad guys are hacking this and sharing some bad things but otherwise all are ok. carpet cleaning streatham

calvinbrock735 commented:

wow this good but ,I like your post and good pics may be any peoples not like because defrent mind all poeple , alex residences

calvinbrock735 commented:

The first several months of my site there were no comments; just give it time; now they come in like crazy every day! Thanks. whitehaven

Surander commented:

lol!!!!sopa kale. poia symferonta to ekotealevmntai kai mas fovizoun me apeiles? to thelhma tou kanoun.eironika milao bebaia. Alla ti tha ginei me auth thn katastash? exei gemisei o kosmos psihika diataragmenous epeidh kapoioi dithen tou theou, apofasizoun gia ekeinon, alla kai gia thn moira ton psihon tou kosmou. Les kai o theos einai aboulos, kai perimenei apo autous. Tous lypame. Den exoun xara mesa tous kai thn klevoun me apeiles kolashs apo allous.O theos na balei to xeri tou. Auto exo na po monaxa.

william commented:

Should there be another persuasive post you can share next time, I’ll be surely waiting for it. start running

mattress reviews 2012 consumer reports commented:

I was very pleased to find this site.I wanted to thank you for this great read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post.
mattress reviews 2012 consumer reports

calvinbrock735 commented:

So luck to come across your excellent blog. Your blog brings me a great deal of fun.. Good luck with the site. personal loans for bad credit

black friday mattress sales commented:

I am always searching online for articles that can help me. There is obviously a lot to know about this. I think you made some good points in Features also. Keep working, great job!
black friday mattress sales

Tibbie commented:

Dear Sisters, I believe that you can approach them with precaution and hope to achieve what the whole Karen Nationality's long decades suffering free and own initiative Management of our Natural Resources for the Developments to Karen State and it's peoples.We will not accept the Natural Resources and our Lands being exploited by Self-esteem Business Company who play along with Myanmar Authority,driving our peoples homelessness and no land to survive anymore.You are fully responsible to lead our peoples in right Path of Nation and prosperity of our Karen Peoples.I remind again that we do not want the Peace Fund Office just like in Tavoy KNU-4.The Myawaddy Peace Fund Office of KNU-6 & 7 should not be a Police Station to arrest the Karen Peoples same like DKBA Gates at the Riverside and asked 400 Bhats per head to release back to our own land who arrested and send back by Thai Immigration Police in Thai's soil. small business insurance cost estimate

Rusty commented:

koukla mou, den einai kamia timoria, mia xara eisai, stathikes ligo atixi, auto einai olo, pantos den iparxei tipota dinatotero apo mia ginaika, koita ton eauto s kai oso zeis min paretise, ego kontepsa na pethano apo lathos ektrosi, sapizan mesa mou ipolimata epeidi brethike enas malakas giatros kai epeidi epeita brethikan ki alloi polloi malakes pou den briskan oti exo ipoloimata kai m legan oti leo psemata oti ponao kai eimai mia xara eno pethena…, istera apo ena diastima epeidi katalaba oti sigoura kati den paei kala, apofasisa na apeuthintho se enan para poli kalo giatro pou eutixos brethike ki autos…mou ekane amesos epembasi kai glitosa… skepsou ti itan auto gia ton organismo m kai tin igeia m-i mia epembasi meta tin alli…gia mines ponousa sinexeia meta apo ola auta…olo to diastima pou ponousa kanenas giatros den ebriske giati ponao afou eixa ksemperdepsei me ola auta… ki etsi apofasisa na gino pio dinati moni m, pio skliri, na min exo anagki kanenan giatro oso perna apo to xeri m kai genikos kanenan, na frontiso kai na giatrepso ton eauto m kai ta katafera kai eimai kalitera apo pote, to pos einai alli istoria…alla den metanoiosa, oute metanoiono, kai an giriza ton xrono piso tha to ksanakana giati sebomai tis epiloges m,tora egina poli kaliteri apo oti imoun, tora gnorizo para polla, kai mou aresei apisteuta to pos eimai auti pou eimai xari stin poreia m, telos, o monos logos pou egrapsa ti m sinebi einai gia na doso kouragio se ponemenes kopeles kai na proeidopoiiso se periptosi pou den to kserete oti iparxoun para polloi axristoi giatroi kai aneuthinoi ekei ekso kai ligoi einai oi pragmatika kaloi autoi pou einai anthropoi kai tha se antimetopisoun san anthropo. car insurance quotes in New York City NY

Leatrix commented:

Здравствуйте уважаемая Сиен! 1.Марина 2.Живу в Греции,работаю швеёй,в постоянном поиске самой себя,практикую Рейки 3.Приобретение уверенности в себе,силы.Как притянуть в свою жизнь любимого с такими же взглядами на жизнь и интересами credit card cash rebate

Putra commented:

Wonderful exltpnaaion of facts available here.

Felipe commented:

Hey cassey so I know this has nionthg to do with this video but I have been using your videos to lose weight and I did lose some weight but I've noticed I got stretch marks I was wondering if you ever got them if you did can you do a video on how you got rid of it http://pdmyvm.com [url=http://liroelicasy.com]liroelicasy[/url] [link=http://qjzcfri.com]qjzcfri[/link]

Mariela commented:

Highly recommended list of American scholos, colleges and univeristies. Dedicated directory of US school list inculdes all US private school, public shool, kindergarten, college and univeristy, a searchable site for the sources for people to find out what he need.School ratings nationwide to find the best scholos. View parent ratings, reviews and test scores and choose the right preschool, elementary, middle or high school for public or private education.school ratings, public scholos, public school ratings, private scholos, private school ratings, charter scholos, charter school ratings, school reviews, school rankings, test scores, preschool, elementary school, middle school, high school, parent community, education resource, find school, great scholos, greatscholos

nobel commented:


Your article shows you have a lot of background in this topic. Can you direct me to other articles about this? I will recommend this article to my friends as well. Thanks
Instagram Tags

rohai commented:

I am now not positive where you’re getting your information, however good topic. I needs to spend a while learning more or working out more. . http://www.webtranquille.fr

no flame e cigarettes commented:

Now all persons have using some Facebook as a social media site and me also. I think Facebook is a best personal or official communication and all types of social sharing site. Now Facebook is a more demanding site, so that is the main point of Google was giving some more priority to Facebook.

erikaelsi commented:

As it gains an estimated 27 extra million users from its new purchase, all eyes will be on how Facebook will take advantage of the increased sharing activity, as well as its access to a new pool of targets.somanabolic muscle maximizer

d3 gold commented:

I hope Facebook won't change Intagram like the way they changed "the Facebook" back when it was more user friendly..
d3 gold

Aron Luther commented:

Actually much more peoples are browsing internet only for checking their social media accounts, but maximum peoples are using only for sharing some images or flirt charting and most probably social media’s are changed our social standards. Mark Zuckerberg is create some more advance technology for improving Facebook and it is also valuable for any business promotion, but bad guys are completely creates some bad images of Facebook’s in our societies.

http://www.creditrepairprofessionals.net

Patricia Clark commented:

Thanks to Mark Zuckerberg for creating a social media website it is Facebook, and now this is very demanding site of the world. Really I like this and I have been sharing any images, photos, video clips and quotation to my friends. Actually many bad guys are hacking this and sharing some bad things but otherwise all are ok.

Patricia,
http://www.bimmersclinicinc.com/

john edwards affair commented:

Now all persons have using some Facebook as a social media site and me also. I think Facebook is a best personal or official communication and all types of social sharing site. Now Facebook is a more demanding site, so that is the main point of Google was giving some more priority to Facebook.

Stephen Uprichard commented:

Good article, but again along with the many that I have read regarding the topic the point of the aquisition has been slightly missed.

Facebook did not necessarily aquire Instagram for the content or the users (Although a massive bonus!) but for the technology and the infrastructure that Instagram has.

They use an extremely complex infrastructure to not only create the photo sharing platform but to ensure there user experience was delivered. If you think about it millions of users in a short space of time using your service, "How the hell do we handle the data?!" this is the question that Instagram asked and nailed it with their server and tech solution. Giving a real like example of what I mean is think about Twitter - how many times did you see the blue whale "We're over capacity come back later" how many errors were there on Instagram with more users in a shorter space of time - there's the answer.

So yes, correctly so there is the concept of the photo sharing capabilities and lapping up the users but something that marketers and the general public seem to skip over is the tech lying behind all the pretty pictures. This is no fault of their own as users, marketers and most people only see the chasis of the car but rarely look under the bonnet, if you catch my drift...

You can read a little bit more here if you'd like to don your star treckie techie hat for a moment or two:

http://highscalability.com/blog/2012/4/9/the-instagram-architecture-facebook-bought-for-a-cool-billio.html

As mentioned, a good and interesting article and hope this provides more insight as well.

Comment on this article





Verification (needed to reduce spam):

Subscribe to Netimperative Newsletters

Email address:


Daily
Weekly
Search Marketing
Events
Publishing & Media

Send as:
Text
HTML

Alternatively, click here to unsubscribe

Digital Training Academy training tips
Digital Training Academy
Essential skills for today's marketers: boost your team's results with customised advanced digital marketing coaching from world class trainers at the Academy.
Mail our academy managers Ask our tutors for more
Full details here...
 

Digital marketing audits - improving your ROI
Digital Training Academy

Getting the best ROI from your websites, emails and online ads? Sure?

Our digital marketing audits review your current and planned campaigns to find ways of cutting budgets without cutting impacts.

Mail our academy managers Ask for more
Full details here...

About Netimperative | About Digital Strategy | Terms of use | Privacy | Cookies

© Copyright 2014 Digital Strategy Consulting Ltd | Netimperative.com is part of the Digital Strategy Consulting group | UK company number 4342602 | The Digital Hub, 8 Macklin Street, Covent Garden, London, WC2B 5NF