The underlying framework and methodology driving social media development in 2010 was visual. In a social media landscape lorded over by words (think the original incarnations of Facebook and Twitter) 2010 saw both Pinterest (March 2010) and Instagram (October 2010) burst onto the scene with a focus on the insatiable human appetite for visual stimulation, via pictures and videos.

What is Instagram? 

Instagram was founded by Kevin Systrom and Mike Krieger, and is an online social networking service that focuses on mobile photo-sharing and video-sharing. It allows users to take pictures and videos and then easily and conveniently share them via a number of other popular social networking platforms such as Facebook, Flickr, Twitter, Tumblr etc. Users are also able to apply a variety of digital filters to the pictures and videos they post.

Kevin Systrom (CEO, co-founder of Instagram)

Like many digital experts, Kevin Systrom went to Stanford University, graduating in 2006 with a Bachelor of Science, majoring in Management Science & Engineering. His initial foray into internet start-ups was as an intern at a company called ‘Odeo’, a search and directory website for RSS-syndicated audio and video that allowed users to record, create and share podcasts with a Flash-based interface. You’ll be forgiven if you’ve never heard of Odeo. But you probably will have heard of what Odeo would eventually morph into. A little known company called, ‘Twitter’. 

After graduation, Kevin cut his teeth with a couple of very productive years working at Google, where he was tasked with developing Google Reader, Gmail and associated products as part of the Corporate Development team. 

Kevin has a longstanding love for photography, which he and co-founder Mike Krieger combined brilliantly with the launch of Instagram.

Mike Krieger (co-founder of Instagram)

Mike Krieger, like his long-time friend, Kevin Systrom, also graduated from Stanford University, where he studied Symbolic Systems, specialising in Human-Computer Interaction. 

While doing his undergrad, Mike interned with Foxmarks (now Xmarks) as a software developer, and at Microsoft’s PowerPoint team as a Product Manager. 

His Master’s thesis was a brilliant discourse on how user interfaces can be utilised to support large scale collaborations.

After graduating from Stanford, Mike worked for a year and a half at Meebo as a front-end engineer and user experience designer, before eventually joining the Instagram team doing design & development.

The Growth of Instagram

In March 2010, Burbn Inc. (the parent company of Instagram) received seed funding of $500,000. This was seven months before the actual photo-sharing social networking service was made available to the public. 

In February 2011, a few months after the public launch, Instagram raised their series A funding round of $7 million from a consortium of venture capital funds. The company was valued at $25 million during this funding round.

Some 14 months later, in April 2012, Instagram raised another funding round of $50 million from venture capitalists, with a valuation of $500 million.

Instagram is Acquired by Facebook 

Immediately after launch, Instagram started gaining huge popularity and reached a registered user base of a 100 million people in April 2012. This was technically only one and a half years after the official launch. At which time the company was acquired by Facebook for a mouth watering $1 billion (paid via a mix of cash and stock).

This purchase was by far Facebook’s most significant acquisition and was a definite indicator of how important mobile and photo sharing were becoming to Facebook. An interesting parallel for this purchase can perhaps be drawn with Google’s $1.65 billion acquisition of YouTube in 2006. In as much as it demonstrated an internet behemoth with expertise in a particular area (search, in the case of Google, social media in the case of Facebook) acquiring expertise in an adjacent (but different) area, via purchasing a fast-growing start-up.

This purchase was unusual for Facebook, as its previous purchases of other start-ups were modest by comparison.  
“This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.”

Facebook CEO and Founder, Mark Zuckerberg 

Instagram – Features and User Demographics

Instagram allows users to upload photos and short 15-second videos, apply digital filters to create colour and contrast effects, and then enables them to share this content through social networking platforms such as Twitter and Facebook. Instagram deliberately restricts images to a square shape, in a nod and a wink to those wonderful instant Polaroid photos many of us grew up with. Instagram users can interact with content posted by other members by ‘liking’ it, or by following the user that posted it. They can also search for content using hashtags.

The Instagram mobile app is distributed primarily through Apple’s App Store, Google Play and Windows Phone Store. The app is supported on iPhone, iPad, iPad Touch, Android and Windows handsets, while third-party Instagram apps are available for BlackBerry 10 and Nokia-Symbian handsets and devices.

Boasting 200 million active users in 2014, Instagram’s user-base growth over the years has been nothing short of phenomenal:

Number of Active Users on Instagram

Instagram Milestones and Achievements

Other important milestones and achievements for Instagram over the years include:

• Instagram was declared the ‘iPhone App of the Year’ in December 2011.
• Instagram app for Android Froyo version 2.2 launched in April 2012 got downloaded more than a million times in less than a day.
  
• By July 2012, Instagram was rated more than a million times on Google Play, to become the 5th app ever to reach a million ratings. 
  
• As of April 2013, Instagram was rated more than four million times on Google Play.

A look at statistics from September 2013 reveals that a total of 16 billion photos and videos were shared via Instagram, with an average of 55 million new shares being made per day. At time of writing (August 2014) Instagram users are making an average of 1.2 billion new Likes per day.

According to another 2013 study, some 13% of all Internet users worldwide were found to be using Instagram. And some 70% of Instagram users were found to be logging on to the site daily, with 35% logging in more than once a day. 

A 2014 study revealed that the Instagram mobile app user base registered a 25% growth between December 2013 and May 2014. And as of March 2014, a total of some 20 billion photos had been shared via Instagram. It has also been reported that in 2014, an average of one thousand new comments get posted on Instagram every second.

Unlike something like Google + (where people sign up, but hardly ever use it), Instagram demonstrably shows us that people come back again and again to the platform to both post and interact with other users.  And it’s this interaction (much like Facebook itself) that allows us to see why Facebook valued the company at $1 billion in 2012.

As the following Statista chart demonstrates, Instagram has been found to be the 2nd most popular social media app among American smartphone users aged between 18 and 34:

According to a 2013 study, some 25% of the Fortune 500 companies were using Instagram as a social media networking platform. A 2014 study indicates that some 43% of the top 100 brands post daily on Instagram, with the average number of posts made by these (top 100) brands on Instagram per week standing at 5.5. Some 65% of the world’s top 100 brands had Instagram accounts (as at 2013).

In 2014, the average value of sales orders generated via Instagram referrals has been found to be a very respectable $66.75. In a late 2013 study, Instagram was also found to deliver the 4th highest (1.08%) conversion rate among all social media platforms and services, trailing only Facebook (1.85%), Vimeo and YouTube (1.16% each).

A 2014 survey conducted by Social Media Examiner reveals that Instagram is among the top 10 social media platforms used by online marketers.

According to the SocialMediaMarketingReport of 2014, some 28% of online and social media marketers use Instagram as one of their marketing channels. This report also indicates that some 42% of the marketers (that were polled during the survey on which this report is based) were planning to increase their use of Instagram as a social media marketing platform. As this report further indicates, a significantly higher number (49%) of B2C marketers are likely to increase marketing activity via Instagram than their B2B counterparts (32% of which said they will increase Instagram activity).

Interestingly, the same percentage of marketers (i.e. 42%) also expressed their willingness to learn more about Instagram as a social media marketing and optimisation platform.

To paraphrase the old adage from the W. P. Kinsella novel, ‘Shoeless Joe’ (popularised in the classic 1989 movie, ‘Field of Dreams’): ‘

“If you build it, they will come.”

And with more and more people flocking to this photo-sharing social network every day, it is not surprising that Instagram has emerged as one of the world’s ‘must use’ platforms for businesses, online marketers and social media optimisers.

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