What Are Facebook's Key Value Generators?
Instagram captured 32% of US teens
Facebook’s (FB) most lucrative product, Instagram, continues to drive the shift towards generating visual content online. Instagram is considered the most popular social media site among teenagers. About 32% of US teens use Instagram for uploading photos and videos, according to Piper Jaffray.
The increasing popularity of Instagram among US teens resulted in the declining attractiveness of Facebook for this demographic. Facebook’s teen users saw a decline from 33% usage in 2013 to 14% in 2015. However, the increasing popularity of Instagram among US teens will help Facebook increase its top and bottom lines.
Instagram has recently reached its milestone of more than 200,000 monthly active advertisers and more than 400 million monthly active users (or MAUs), according to CNBC. Similarly, Twitter (TWTR) has 130,000 active advertisers with 320 million MAUs, according to its recent quarterly results. Moreover, LinkedIn (LNKD) and Pinterest both have 100 million MAUs, according to SeekingAlpha.
Products and features
According to Instagram, “Around 60 percent of users say they learn about products and services on Instagram, and 75 percent say they take action after being inspired by an Instagram post.” This indicates that the users are highly dedicated to learning about brands on Instagram, which in turn raises the opportunity for marketers to showcase their products and services to users. Instagram provides different ad formats such as photo ads, video ads, and carousel ads to create rich and visual content.
Over the previous year, the company introduced “trending content” to improve the overall Instagram experience. In March 2015, Instagram introduced the standalone Layout app, which allows users to convert multiple images to a single image. Apart from this, the company also launched the Boomerang app for making looping videos, which can be shared with Facebook, Instagram, or any other social media application.
Facebook (FB) and Yahoo (YHOO) constitute 4.3% and 0.62%, respectively, of the PowerShares QQQ ETF (QQQ).
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