Introduction and brief history Revenue Model - Advertising Facts and costs Market share and competitors

1. COMMUNITY PROVIDER
BUSINESS MODEL GROUP:- 12
MD.AYAZ QURESHI-20DM119
MOHIT SINGLA-20DM125
NANDANA K-20DM132
NIDHI GUPTA-20DM138
OJOSHWI BHATTACHARJEE-
20DM146
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2. Social Network
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INTRODUCTION
Instagram is an American photo and video
sharing social networking service owned by
Facebook, created by Kevin Systrom and Mike
Krieger launched for the first time in October
2010 on iOS. They began work in San
Francisco by developing a mobile check in app
named Burbn which was later renamed
Instagram as they re-focused on photo
sharing.

3. Social Network
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2010-2011 2012-2014 2018- present
INSTAGRAM: A BRIEF
HISTORY
1. $500000 funding
on March 5th 2010
2. 1st Instagram post
on 15th July 2010.
3. 6th October
Instagram app in
releases in the app
store.
4. Feb 2011 $7
million received as
funding
5. Raises $50 million
on April 2010
1.Version for
android released in
2012.
2. Excess of 1
million downloads in
less than a day.
3. Two major
updates made.
4. Facebook buys
Instagram for $1
billion in cash and
stocks.
5.March 2014
Instagram switches
to Facebook places.
1.May 11th 2016
major design
revamp.
2. December 6th
2016 commenting
liking was
introduced.
3. April 2016
windows mobile
app is introduced.
1. June 2018 IGTV
gets launched.
2 .August 2019
Instagram removes
following tab.
3. March 2020
Instagram launches
a new feature called
co-watching.
4. August 2020
Instagram launches
“reels”.
2015-2017

4. Social Network
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“To capture and share the world’s
moments.”
MISSION STATEMENT
VISION STATEMENT
“To solve three simple problems: Mobile
photos always come out looking mediocre.
Our awesome looking filters transform your
photos into professional-looking snapshots.
Sharing on multiple platforms is a pain –
we help you take a picture once, then
share it (instantly) on multiple services.
Most uploading experiences are clumsy
and take forever – we’ve optimized the
experience to be fast and efficient.”

5. Social Network
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CORE VALUES
1. Community first: Instagram has 7
different channels for different countries
as of 2016.
2. Inspire creativity: Instagram has
taken action both online and offline in
order to spark creativity amongst their
users.
3. Simplicity matters: Instagram focuses
on giving users a simple, fun experience
when they use the app.

6. Social Network
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CULTURE
Instagram wants to promote a culture
of creativity and openness among its
users.
It wants its users to share idea,
thoughts and express oneself in
various ways, build network, help
create influence in a global scale
while at the same time maintaining a
safe and supportive community for
everyone.

7. REVENU
E
MODEL
ADVERTISIN
G

8. HOW
DOES
INSTAGRA
M
MAKE
MONEY ?
Billion
Revenue
generated
1n 2019
$20
.60
$ For Insta
Feed
COST PER CLICK
$.50For Stories
COST PER MILLE
$1.65For Insta
Feed
$.90For Stories
66
%
People say-
they use INSTA to
interact with brands
More
than
2Million
advertisers advertise
on Instagram every
month

9. Story Ads Video ads Ads in
Explore
Collection ads

10. Social Network
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COMPETITORS
367
2020
No. of active users
(in millions)
1203
2000
800
1082
326
397

11. • Privacy & data leaks
• Many similar social media
platforms
• Product extension
• Increasing internet penetration and no. of
Smartphone users
• Rapid technological development
• More advertisement and marketing
• The ease of posting across multiple platforms
• User base of more than 1000 million
• Direct messaging-(Instagram Direct)
• leverage the strengths of parent company
• Entry barriers
• Continuous innovation is needed
• Intense competition
S W O T
STRENGTHS
THREATS
WEAKNESSES
OPPORTUNITIES

12. USP
The vast range of filters and editing tools
available to users to make images look
good and stand out. Instagram rewards
creativity and experimentation;
attractive, unusual and quirky images
may attract more interest than
straightforward and predictable ones.
From
Facebook

13. BUSINESS
VALUE

14. • Social Network
• Tracking
• Entertainment
• Sharing
• Discovery of ideas
• Amazing filters
• Effective hashtags
• Marketing
• Interaction with target audience
directly
CUSTOMER’
S
PERSPECTIV
E

15. • Access to big user base
• Reduced direct marketing cost
• Lower cost of customer acquisition
and retention.
• Increase of sales revenue
• Design
• Development
ORGANIZATION
’S
PERSPECTIVE

16. • Increased profits
• Increased market share
• Brand image
OWNER’S
PERSPECTIV
E

17. Social Network
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Collects data through
• Login credentials of account holders
• Captured content
• Data that links users to the photos they took, tagged or liked
• Text message history, address book contacts or other similar
personal information
• Metadata
• Transactional data
• Facial recognition data
• Data on which devices are linked to which accounts
• Geolocational data
HOW INSTAGRAM COLLECTS THE
DATA

18. Social Network
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18
How Instagram Uses Big Data And Artificial
Intelligence to achieve Operational Excellence
Explore Page and Search
Function
Enabled by tagging, the search tools help
Instagram users discover things of interest
among the millions of uploaded images
1
Target Advertising
Instagram have a powerful network of
analytics information to help target
advertising based on what people like, who
they follow and interact with
2
Enhance the User Experience
Instagram changed its feed from reverse-chronological
order to showing posts that users would like and share.
Machine-learning algorithms were put to help sort the
information
3
Filter Spam
Instagram uses artificial intelligence to fight
spam. The spam filter is able to remove fake
messages from accounts.
4
Fight Cyberbullying and Delete
Offensive Comments
Instagram’s DeepText identify spam and
remove comments that violate
Instagram’s Community Guidelines.
5
Study the Human Condition
Instagram uses the insights it extracts from all the data it
collects to improve while others find great potential in the
enormous data it collects to uncover insights about human
behaviour, cultures and more
6

19.  Problems
 Constraints
 Limitations
Before and After the Launch
High Price of Internet
At the time when Instagram was
launched, the internet data packs were
very expensive. Since it was an image-
based social media app, it consumes
more internet data.
1 Market Cannibalization
When Facebook acquired Instagram, it
faced a problem of Market
Cannibalization, as the same users
started using Instagram more than
Facebook.
1
Slow Internet Speed
The time when Instagram was launched,
4G technology was not yet introduced &
3G was the highest bandwidth one can
access to. It created a limitation for the
smooth functioning of Instagram.
2 Failure of IGTV
IGTV was a very celebrated and
ambitious platform launched by Instagram
for uploading longer videos. It failed to
attract content creates and audience.
2
Tough Competition in the Market
At the time of Launch- Facebook, Twitter
and YouTube were very successful in the
Community provider business model,
leaving a very small room for a new
entrant.
3 Evolution of New Core Competitors
During the course of time Snapchat,
Tiktok, Pinterest etc. gave tough
competition to Instagram.
3
Before the Launch After the Launch

20.  Solutions
Before and After the Launch
Targeting High class and Upper-
Middle Class
In its initial days, Instagram was only
available for iOS users, targeting the
audience which can afford more in the
Internet data packs.
1 Mandatory FB page
To counter Market Cannibalization,
Facebook made it mandatory to create a
FB page in order to run an Instagram
business account.
1
Develop Interface Lighter
and Faster
Light and user-friendly interface was
developed. The app automatically
compresses the size of images uploaded
on Instagram.
2 Launching of Instagram Reels
After the failure of longer video platform-
IGTV, Instagram launched Instagram
Reels for short videos, which results to be
very successful.
2
Creating Unique and Distinctive
Identity
Instagram successfully created a distinctive
image as the picture focused social media
platform. All photography and selfie
enthusiasts started using it more and more.
3 Introducing New & Attractive
Features
To counter the threats from core
competitors, Instagram introduced new
features like Story, Live streaming, Filters
and photo editing options etc.
3
Before the Launch After the Launch

21. Future Plans
Improved analytical
tools
Longer period of data
collection, data history, best
performing post, hashtag
tracking etc.
1 New tools for shopping
and checkout
Helps to view a product from
a post and then continue to
the payment process more
efficiently
2
Enhancing Rights
Manager
To find any of the
copyrighted images and then
alerts the poster of the
potential copyright
infringement
3
Improve transparency
Check the authenticity of the
account and provide greater
awareness about fake
influencers
4

22. THANK YOU