Why did Facebook buy Instagram?

Instagram + Facebook: Why?

As I reported earlier that Facebook has bought Instagram for a billion dollars and I also wrote what you can expect from the acquisition: The future of Facebook + Instagram: 10 Predictions, there is one thing bothering many. It is a question and its “Why”? Why did Facebook buy Instagram? This has been arising since the news came out and people started predicting that what’s gonna happen and why did Facebook buy it? Why did they pay a billion dollars for it? Well. we’ll cover all these in this article and discuss more on how this will effect Facebook and Instagram rivals.

Threat

Instagram was kind of a threat to Facebook but not a big one as it is also a potential area for the company to explore and it could easily grow user base and engagement so, they bought it. Instagram was becoming a social network of its own where people shared filtered photos with tagging info and not many of them shared those on Facebook. We’ve discussed other threats/rivals below…

Users

I think thats a major reason because Facebook has 800 million users and 430+ million mobile users while Instagram has 30 million on iOS and more than a million on Android. Instagram is set to grow for sure with new users coming to the app but the issue is of losing exiting users as many are not liking the deal that Facebook is buying Instagram.

Personal Data and Advertising

The other reason could be personal data and by that i mean geo-tagged images. Instagram has more than 100 million photos.. wow but wait people upload 100 million photos on Facebook every day. Instagram users upload photos with locations and more details to it and this is what Facebook wants… Targeting users and showing Local Ads.

Yahoo 

After the Patent fight between Yahoo & Facebook in which Yahoo warned Facebook that it will sue the company, and they did and then Facebook sued Yahoo back and so on, Facebook may want to kill Yahoo by killing Flickr. Yes, Yahoo will be losing the most out of this deal because Instagram is already a rival to Flickr and now Facebook is a rival to Yahoo. So the equation goes like this…

Facebook + Instagram > Yahoo + Flickr

Google

Facebook acquiring Instagram will effect Google too. Picasa, which is a Google product now integrated in Google+ has been losing users since the integration. This will kill of Picasa and Google+ combined. So another equation is

Facebook + Instagram > Picasa + Google Plus

Path

Path may thrive as the limited social network, but one of its core functions — taking photos with filters and then sharing them to Facebook — will be severely challenged by a combined Instagram/Facebook product that does essentially the same thing.

Pinterest

Pinterest is a big threat to Facebook, as we all know that. Pinterest is growing fast, faster than any social network, it was recently ranked 3rd in all Social Networks above LinkedIn, Google+ and Tagged but below Facebook and Twitter. Pinterest is about Creating boards, sharing photos, repinning them, comments and likes. Thats pretty much what Facebook has in the photos section. Pinterest is offering users a more beautiful interface and women are using it like crazzzzy. 60% of Pinterest users are women and they are so active on it. One of the major reasons why women use Pinterest more than Facebook is to avoid stalkers, thats right, Facebook is full of stalkers but Pinterest is not there yet, and this is just what i think.

This move may or may not effect Pinterest as Zuckerberg said that Instagram will be independent from Facebook, then people will be able to easily share photos on Pinterest as well but it won’t be the primary option because now Facebook might include a Like and Share button that will take a user directly to Facebook.

Thanks to CNET

 

Related:

The future of Facebook + Instagram: 10 predictions

Facebook buys Instagram for a billion dollars

Instagram arrives on Android, downloaded a million times in less than 24 hours

Pinterest has more visits than LinkedIn, Tagged, Google+ but less than Twitter and Facebook in US


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