The news that Facebook is acquiring Instagram for an estimated one billion dollars sends out all sorts of messages. Instagram has amassed 30 million users in under two years. It’s CEO, Kevin Systrom, is another young entrepreneur (like Mark Zuckerberg) who found a killer app.
Here are a few angles and thoughts:
Photos rule – People love to forward and share the pictures that frame their lives. Even dopey stuff like meals you’re about to eat.
Mobile rules – Yet another indication that the shift from laptops, desktops, and cameras is moving very quickly. Consumers are rapidly moving to handheld devices they can stuff in their pockets or purses.
Small ball is working – You don’t need a mega staff to make it big – just mega ideas. It’s been reported that Instagram has 13 employees, making this a pretty substantial payout. Talk about winning the lottery.
Facebook is shoring up its weaknesses – No matter how big they are, Facebook is working hard to patch up any chinks in the armor, in this case, mobile. We wrote some time ago that Facebook hasn’t monetized mobile – but they recognize its importance. This purchase helps to solidify its mobile reach.
Key acquisitions can strengthen brands – Mark Zuckerberg claims that there won’t be “many more of these,” so it shows the importance of getting stronger in the shared experience space. And it also takes care of a potential Facebook competitor at the same time.
Here is Mark Zuckerberg’s post:
So, what does this mean for radio?
The words that jump out at me in this transaction are: visuals, sharing, mobile, ability, innovative, strategic, proactivity. These are all qualities and characteristics that are important to succeeding in our changing media world. The outgoing CEO of Best Buy, Brian Dunn, would probably echo these sentiments as he exits a brand that has not kept up with the digital demands.
Radio has made strides in some of these areas, but the Facebook acquisition of Instagram provides valuable lessons about what’s next and what matters.
Click-share-connect.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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I was having a similar conversation with a radio friend two weeks ago. We were discussing the long term strength/weaknesses of Twitter and Facebook. My thoughts are that Twitter will have more staying power because of its mobility and instant gratification. All of a sudden Zuckerberg buys Instagram and suddenly facebook increases its mobility and simplicity. Michael Jordan was once asked why he practiced so hard when he was clearly the best player in the NBA. He said something to the effect of “If I don’t, somewhere someone is working harder than me and eventually we will meet on the basketball court and he will win.”
Danny, the Jordan quote says it all. I believe that even with this IPO just a few weeks away, Facebook is ever-vigilant about staying ahead of the game. Some analysts have noted that as a result of the Instagram acquisition, Facebook will have to redo/resubmit all its filings. And who cares? it’s just legal and accounting fees. The bigger win is bolstering their dominance in social media, especially as it pertains to mobile – the Holy Grail of conenctivity and portability. Thanks for your comment.