Instagram, the popular online image website has now been acquired by Facebook. The popular news is there all over the internet. People are eager to know about it and the keyword is getting hits from all over the globe. The Instagram, the image related site, having the user database of about 40 million people, has been dealt by the Facebook, for a huge amount of 1 billion $. The experts are claiming that Facebook invested that big money in Instagram that it did not deserve at all. Facebook is known for its great deals, while acquiring other networks. Then Why Facebook made big investment in the company, with No Revenue. The same question may be striking your mind as well. So let’s try to solve the puzzle.
1. Facebook Wanted to Acquire Instagram Before Any Other Could Do
The top reason for this surprising deal is the race of popular networks like Google, behind the Instagram. Google Plus has got new lookout and could get the Instagram in their network. If this was happened, then Loss, Loss and totally Loss were there for Facebook.
2. Majority of Facebook Users Use Facebook for Photo Sharing
It has been surveyed that the majority of the Facebook users are there to look at others photos or to upload their own. Facebook’s image features are good, but Instagram can make it best. The integration of Instagram will allow the Facebook users to add more filters and effects to their images. So integration of Instagram in Facebook – Better Image Filters – More Users.
3. Better Mobile App
When It comes to the image sharing, the Facebook falls in mobile users. The Facebook has good features in image sharing for the desktop users, but the same is not true with the mobile users. Many Facebook users access Facebook from the mobile and if their sucking mobile app would keep up going like this, then loss in no. of mobile users, that Facebook will never like to happen.
4. Better Mobile Ads
The Facebook has fewer relevancies in delivering ads on mobile. Instagram knows that what the users are interested in, better than Facebook. Integration of Instagram will help in delivering more relevant ads for the mobile users, which will result in more PPC and thus more Revenue for Facebook.
5. Facebook Is Scared
Yes, the other reason can be that, Facebook is scared. It always has been facing competition from the other networks, from the very first day of its launch. But with the launch of Pinterest, it seems that for first time, Facebook has got a tough competitor. Users are preferring Pinterest more that the Facebook. Facebook wants to be the best always and Pinterest can eat up its popularity. It is the first time that Facebook is scared from any image network and this make the Facebook to take this step and to make an investment of 1 billion $ in Instagram, the company with no revenue.
An image is better than 1000 words and by this surprising deal, Facebook has proved it.