Someone walks past you, and punches you in the face, and says, “I’ll give you $100 right now if you give me a single dollar bill. Just $1.” Would you do it? Okay, take out that getting punched in the face and you have exactly what happened with the darling of Facebook. Instagram.


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From its humble beginnings of showing hipsters and every meal they ate and cat pictures, to the behemoth that now boasts entire careers and companies built around it, Instagram is a massive juggernaut in the social media world, and rightly so.

Boasting a purchase price of $1B back in 2012, Instagram was right behind Twitter ($TWTR) in ushering the hashtag craze seen from billboards to tattoos (we are serious about the tattoo thing). Recent reports also put Instagram crossing the $10B mark, meaning that $FB would have a 100x return on their money, without even getting punched in the face.

Bloomberg intelligence analysts are predicting that Instagram revenue would account for
upwards of 16% of Facebook’s already massive balance sheet, already up from 10.6% just a little over a year ago.

They have a billion users, now allow live streaming a la Snapchat and Facebook like, and it’s the perfect place to go should you need to find a recipe, learn to do exercises, or scroll through an endless parade of yoga pants and crop tops.

How you make money:

With Instagram becoming such an important part of Facebook’s balance sheet and revenue,
look at what features and monetization strategies they are putting in place. Rev share from
eCommerce initiatives, increased ad spend, various ad units, new video ad units, expansion of sponsored posts. All of these will add to parent company Facebook’s bottom line, and will help boost revenue.

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