Facebook Inc (NASDAQ:FB) took quite an impressive gamble with Instagram when it purchased the platform. Instagram has been performing exceptionally well and now has 400 million users.
The social network has been on a consistent upward trend since it was launched five years ago. Facebook, however, swooped in and acquired it for a cool $1 billion in 2012 after seeing its potential. More than 40 billion photos have been posted on the social site so far. Facebook claims that only 25% of the people on Instagram live in the US.
The number of people on Instagram has exponentially gone up from 300 million to 400 million over the past nine months. More than half of the people who have joined in the past nine months are from Asia and Europe. Superstars have also taken a liking to the social network. David Beckham is one of the newly registered members on the social platform. Some of the other usual culprits such as the Kardashians continue to dominate with their stardom. Instagram has significantly propelled Facebook above its competition especially in terms of ad revenue.
Instagram is now more popular than Twitter, judging by the number of followers. Twitter’s current membership tallies indicate 316 million active users every month. Facebook has been hard at work to prove to investors that Instagram is a reliable cash flow. The company has also included some tweaks that seem to be paying off through the increased user base. There have been a few updates and improvements to the private message features. The search and explore functions have also been upgraded as well as support for landscape and portrait formats.
Facebook investors were initially worried that Instagram might fail to live up to expectations. They should now be worried about the social site maintaining its relevance or cool factor to maintain the steady growth. Facebook’s ad revenues have been significantly higher than the competition and with Instagram’s continued good performance and support, the company will most likely remain at the top.