Welcome to the crazy world of social networking. You know the industry section where one day there is nothing after which the next day there is a brand-new company that is worth billions. The narrative of Instagram is simply like this. This photo sharing social networking hub came out of nowhere and was purchased from Facebook for US$1 billion. Now comes the hard part: how will Instagram’s product supervisors change things so that Instagram can start to make money… ?
The company has identified its own mission statement as being “… to capture and share the world’s moments… ” It does this by allowing its users to snap pictures with their mobile phone cameras and share them on the internet.
When Facebook bought Instagram to get US$1 billion, they did it for a purpose: to help Facebook expand into the mobile market section. Facebook was struggling to capture a bit of the ever growing marketplace.
Instagram automation has an active user base of approximately 150M users that enjoy the program’s cool, clean layout that permits them to share photos. Any change to this could immediately cause users to leave and go find another program to use for their photo sharing needs – recall what happened to MySpace?
What Instagram’s Product Managers Can Do
The trick to their success is to re evaluate their product development definition and find a means to add advertisements for their app in a way that does not upset or anger their existing base of consumers. The first step the product managers have obtained would be to catalogue all the brand marketers who are currently using Instagram at no cost. This is a good effort and they can probably add it to their own product manager restart.
The product managers are now sitting down together with these companies to see how they could make advertising on Instagram even more valuable to them. The challenge they face is that when the ads on the program become too “in your face”, then they risk driving their base of customers away.
What’s still missing from the item manager’s bag of tricks are the quantitative tools they’re likely to need to make selling advertising space effective. These tools will allow advertisers to ascertain the reach and the efficacy of their Instagram marketing efforts. The long-term aim needs to be to keep things simple for the end users. Should they make things too complex, then their product will not be prosperous.
There is no doubt concerning it Instagram is a very popular social networking service. But they have a massive problem: right now they don’t have any way to make money. Facebook did not spend $1 billion dollars to purchase Instagram just because they liked the way that it seemed. They need it to make money. Changes need to take place.
Instagram’s product managers possess a delicate balance that they will need to attack that was not discussed in their own merchandise manager job description. On one hand they must maintain Instagram’s clean layout that has brought 150M users. On the other, they will need to start to add ads so the corporation may make money. Among the largest challenges is that many businesses are utilizing Instagram free of charge to advertise their merchandise.