Many were surprised when Mark Zuckerberg decided to buy Instagram for $ 1,000 million back in April of 2012. Today, Instagram has a value close to $ 35,000 million as Citigroup. That’s about 49 times what Facebook initially paid, $ 715 million, after the decline in the share price. Instagram, in case anyone does not know, is a portal designed to allow users to upload photos to which you can apply filters of all types, but you can also upload several videos.
How that Instagram is has managed to grow so much in just two and a half years? Well, as discussed analysts, is because advertising. In detail, Mark May of Citigroup says the amount of Instagram users grew by 40% during 2013 compared with the previous year, and only between March and December this year has grown by 50% compared with last year. May believes that Instagram could even get more benefits from its users through advertising, ie that the portal could add more advertising even for greater profit.
It’s been just over a year since advertising was introduced in Instagram . Today the portal has between 250 and 300 million about users, each of which would be worth more than $ 80. The analyst firm believes that Instagram is capable of doing almost $ 1.50 earnings per 1000 users seeing an advertisement once a day, and if we consider the number of existing users and all the publicity that happen to see daily, it is clear that the gains are very large.
What do you think about Instagram and growth that has taken over the years?