Mobile Social Platforms – Instagram & WhatsApp to be Monetized by Facebook

Instagram-whatsapp-monetizationInstagram and WhatsApp’s large user base and high engagement levels suggest a large revenue potential for Facebook (FB).

Instagram is a mobile online photo sharing, video-sharing social network service that allows users to take photos and videos and share them on its platform. Given growing use of photo sharing, we see Instagram as a well-positioned as a social and mobile platform play, and a nice compliment to the Facebook audience given a younger demographic profile of the site.

Instagram has exceeded with 300mn MAUs expectations. Site activity is impressive with 70mn photos shared per day and 2.5bn daily likes. Globally, users spend over 20 minutes per day on Instagram, which sets the foundation for material advertising dollars. We see a $4bn+ revenue opportunity and potential valuation range for Instagram at $30bn – $37bn based on user and potential revenue comparisons to (more…)

How Facebook Plans to Monetize Instagram – Mark Zuckeberg’s Plans

Instagram monetizationFacebook the World’s Largest Web Platform with heavy customer engagement and also the owner of Instagram shared soem insights on how it plans to monetize the exponentially growing platform on Mobile & Web.

Facebook will launch innovative ways of displaying ads on Instagram is a positive largely expected by the market. Further, we believe Zuckebreg’s history of successful product management by balancing user experience with advertiser demand in the roll out of in news feed ads on mobile bodes well for Facebook’s coming efforts in monetizing its Instagram asset. That said, we would not be surprised if the ramp in ad load and as such monetization for Instagram does not quite match that of Facebook’s mobile in feed ad products given Facebook’s broader use case and user base. Nonetheless, in our (more…)