Etude de cas en anglais: instagram.

Created in 2010 by Kevin Systrom and Mike Krieger, Instagram was at its origins a fun photo sharing app which allows its users to share photos with people around the world. With time, Instagram adds the video function and focus on these two to attract users. But the “fun” app becomes one of the biggest businesses on the web, defying its competitors which are principally the other social networks Facebook, Twitter, Snapchat. If Instagram succeeds and is in constant growth, it’s due to a solid business model, a business model based on its users. Instagram makes money by promoting brands and other commercial activities (in exchange of ads fees) on the app, linking them to users which represent potential customers. That’s what we call Instagram for Businesses. Instagram business model is evaluated at $35 billion in 2016.

The main value proposition of Instagram is its ease of use. You just need to have an android or apple phone to download the app and use it. Android and apple users represent more than 50% users on the mobile phone industry. It appears to be a very good channel for Instagram. So, you can share photos, videos on Instagram everywhere, at any time, as people usually always have their phone with them. Instagram users range from the simple addict pictures to developers, media agencies, marketing departments of businesses. In 2014, Instagram users were estimated at 64.2 million people. Although this ease of use, Instagram develops other functions which are specific to the app. For example, filters which can be applied to photos and videos before sharing, giving them a great effect. Filters can be sold to brands to advertise their images. Another good value of Instagram is the Instagram direct. With Instadirect, brands can create a strong relation with its customers by allowing them to communicate directly.

Advertisements that Instagram provides to businesses constitute its main revenue. Ads on Instagram can be images, videos and carrousels. In 2016, Instagram ads revenue was estimated at $595 million through the world. Forecasts for 2017 are even better because demand is increasingly high. The advertisements are coming from brands, and people promoting them (bloggers). These are the Instagram key partners. Bloggers play an intermediary role between customers and brands. They are the one who try the products and make customers the urge to buy. Therefore, customers can access to products by following a link. Recently, Instagram has improved the online shop on the platform by allowing users to access to products directly and shop on Instagram. Of course, Instagram receive a percentage on every transaction directly concluded on the platform. Those innovative updates make businesses have more interest in Instagram.

To maintain its position and continue to make money, Instagram has to acquire and maintain business relationships with consumer’s brand that uses the app to promote and sell their products. What attract brands are users. Instagram should grow its user’s base. This can be done by frequently update the app, to make people continued to be interested. Instagram must find ways to differentiate itself from its competitors. If the app looks like Snapchat or Facebook for example, users will not find any interest in it. Furthermore, as Instagram started as a free app, they should make sure to keep it free in order not to upset their users. They also have to regulate the dissemination of advertisements so that users do not feel stifle. Bloggers are also important actors in the success of Instagram. Instagram should facilitate the link between brands and successful bloggers which will be directly paid by brands to promote their products. They must also ensure the security of bloggers and prevent them to any risk of hacking, by providing a way to access to their original data.

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