Last August 2016 Instagram released a new feature known as stories that directly copied one of the core features of Snapchat. It took 5 months of time for Facebook’s (NASDAQ: FB) Snapchat clone in order to reach upto 150 million daily active users which is the same number as Snapchat’s most recently published figure.
As it crosses that milestone, Instagram is currently preparing to insert ads in the middle of users stories in order to take advantage of its popularity and get more active users at the same time. Ads will be inserted soon in few weeks with different big brands. With an audience already the size of Snapchat’s and its growing even faster – combined with the tech of Facebook, Instagram Stories is on the way of becoming the Facebook’s next Billion Dollar Product.
Facebook’s Newest Billion Dollar Product Details
Snapchat and Facebook did all the legal work
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This is not the first time that Facebook has copied a feature from its competitor, but it is one of the most successful. Instagram has 600 active users per month. It also has 50,000 active advertisers on its platform.
If Snapchat can make $1 billion, Instagram Stories can’t be far behind. Snapchat has internal projection of $500 million dollar to $1 Billion Dollar according to the leaked slide deck from last year. It is quite obvious that not all of the Snapchat revenue comes from its stories feature. Which features content from big name publishers is a big revenue driver. Snapchat’s sponsored filters — the things that make your selfies awesome — are also a growing source of ad revenue. But Stories are expected to become Snapchat’s biggest source of revenue in 2017, according to eMarketer, accounting for 38% of the total. With the benefits of a fast growing user base and pre-existing advertiser base, Instagram should be able to generate revenue as compared to Snapchat’s Stories Features – $355 million dollar this year.
Finding more places to grow Advertising:
The $1 Billion or so Instagram Stories might generate over the next couple of years is small potatoes compared to nearly $24 Billion. Facebook has generated from ads over the past four quarters. Analysts are currently projecting Facebook’s revenue growth will slow down to nearly about 34% in the next year which comes about $10 million dollar in absolute growth.
Should Facebook be on your buy list? The choice is yours…
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