Business Model of Instagram and how Instagram generates its revenue.
                     BUSINESS MODEL OF INSTAGRAM 
AND HOW INSTAGRAM GENERATES 
ITS REVENUE
INTRODUCTION
 Facebook's Instagram, introduced in October 
2010, is a social networking site for photo and 
video sharing. 
 Instagram's Business Model requires users to post 
videos and images that can also be edited by 
multiple filters, sorted by tags, location 
information, etc. 
Source: www.businessinsider.com
SOCIAL NETWORKING
 Instagram was founded by Kevin Systrom and 
Mike Krieger and is an online social networking 
giant. 
 Without any intention to raise money, it was 
made out of fun. Just one thing was enabled, i.e., 
it allowed users to click and upload photos. 
Source: www.cmscritic.com
PRESENT CONDITION INSTAGRAM
 Today, not only for posting videos and images, 
but also for brands promoting their goods and 
services, it is a go-to application for more than 1 
billion people.
 In this post, we will look at Instagram's Market 
Model to explain how a fun-filled app has become 
a $100 billion business.
Source: www.nbcnews.com
HOW INSTAGRAM WORKS?
 Instagram is an application for social networks 
that helps people to share their lives through 
videos and photos. 
 Improving the user interface as people access the 
Instagram app, increasing and maintaining the 
user base and providing customised 
advertisement services are core tasks carried out 
by the Instagram business model.
Source: www.venngage.com
FEATURES OF INSTAGRAM
1. Pictures
 The key function of Instagram is to click on 
images and share them across many channels. To 
enhance their photographs, people can use filters 
and other photo enhancement features.
2. Videos
 Instagram was just a photo-sharing service 
originally. Later, it allowed users to upload up to 
60 seconds of images. This functionality is also 
used by advertisers to advertise their products.
Source: www.cleverclip.com
FEATURES OF INSTAGRAM CONT.
3. Stories
 By using this feature, users can share videos and 
images for 24 hours. The shared material 
vanishes after 24 hours. Through using this 
function, people can also go live. In addition to 
this, marketers can also place full-page ads to 
advertise their products.
4. Instagram Direct
 Instagram Direct helps people to share with their 
followers videos and photographs and chat. 
Individuals may even give message requests to 
individuals they don’t follow. 
Source: www.ebu.com
FEATURES OF INSTAGRAM CONT.
5. Explore Tab
Instagram users can discover anything and 
everything through the use of this feature. They 
can also see the latest behaviour of the persons 
they track.
6. Filtering
Instagram includes a variety of filters to allow users 
to improve their images. Instagram's Business 
Model is made up of the core features above. 
Source: freecoursesite.us
HOW DOES INSTAGRAM MAKE 
MONEY?
1. Picture Ads
By uploading photographs on Instagram, promoters 
will market their goods. It is possible to get these 
photographs in a square or landscape format. 
2. Video Ads
Videos for selling their goods may also be used by 
promoters. Videos provide an extra attractive 
feature with the influence of voice, motion, and 
sight. 
Source: www.financialexpress.com
CUSTOMER-CENTRIC STRATEGY
Instagram provides features inside the app that are 
easy to use. This solves three critical problems: by 
adding filters, click gorgeous images, incorporate 
them easily, and upload and post them through 
many channels.
Source: www.martechadvisor.com
DEFINED USPS
 For their growth, businesses must have Specific 
Selling Points (USP) set. 
 With a variety of several filters, Instagram's USP 
improves images. 
 Companies must be transparent on their 
approach to application creation and what they 
intend to do for the application.
Source: www.mbaprojects.com