Had Instagram been a standalone company, its current valuation would have been over $100 billion, according to a Bloomberg Intelligence unit. The photo sharing app was bought in 2012 by Facebook and has been one of the most popular apps that has shown a positive growth trajectory.
Instagram active users reached the mark of 1 billion, earlier this month. Bloomberg Intelligence analyst Jitendra Waral wrote in a report on Monday that the app is likely to take the revenue past $10 billion in the next 12 months. It is also likely that Instagram user base will increase to more than 2 billion users in the next five years.
Instagram is attracting young users even faster than Facebook's main site. The app is more appealing to the advertisers as well.According to the Bloomberg report, Instagram could make up to 16 percent of Facebook's revneue which will be quite a boost from 10.6 percent in 2017.
Instagram has launched various features in recent times and keeps adding more on a regular basis. The youth connects to the app instantly and the features have gained popularity among the young audience.
The app introduced Instagram television or IGTV recently which will let people share videos for a longer period of time. It is likely that the app's 2018 revenue growth will continue to come from its newsfeed ads as IGTV is still in its initial phase.
Recently, Facebook shares fell to $194.23, a drop of 3.7 percent in New York. As compared to the 1.5 percent gain in the Standard & Poor's 500 Index, the stock has managed to gain 10 percent so far in 2018.
Initially, as the app was bought, the common thought was that Instagram would mostly depend on Facebook for success. However, as the recent trends show, the app could actually be keeping Facebook afloat. Facebook's popularity has declined in recent times and longevity is in question. Facebook at such a time would be dependent on Instagram to ensure its stays relevant.
Facebook has had quite a rough patch recently, with the social networking site engulfed by the Cambridge Analytica Data breach scandal. However, Instagram has remained popular and the young audience is still its USP for advertisers.Currently, the app is immensely popular with influencers. Instagram even topped the charts in a survey conducted by Hashoff. Instagram was the clear choice last year as 99.3 per cent of the influencers who were surveyed preferred the photo and video-sharing platform. Out of the respondents, 70.2% used Facebook, and 37.6% used YouTube to promote products.
Comparison of different social media platforms across 2016, 2017 and 2018 showed that Instagram is the most popular marketing tool and would be maintaining its top spot throughout 2018, followed by YouTube which is gradually gaining popularity amongst influencers.