The Impact and Changes Instagram might bring to Facebook

Recently Facebook bought Instagram for about $1 billion dollars. This scenario seems to be similar as when Google bought YouTube back in 2006. Google is able to turn YouTube into a money making opportunity not just for the company but also for users. Check out the blog post title “10 ways Instagram is to Facebook as YouTube was to Google” from ZDNet. I suppose many of you already notice some of the similarities listed. Now the big question is can Facebook make a profit from Instagram and will Facebook users getting any benefits.

We know that Facebook is going for mobile. Facebook also launches its own mobile ads network. As Instagram is all about photos and pictures, Facebook has to figure out a way to make profits from the photos or mobile photo sharing to be precise. Judging from the current condition presented, there are two possibility in which Facebook can make profits. The first method is to show ads in photos just like the method used by Image Space Media. The second method is to sell photos taken by users. As taking good quality photos with smartphone can be very difficult, I’m guessing Facebook will go for the first method. Eventually creating popular photos with lots of sharing and likes is the way to make profits for Facebook and hopefully for Facebook users.



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