Instagram ZERO in Revenue and No business model yet worth $1,000,000,000!

[DT-waw]

http://www.fastcodesign.com/1669483/what-the-tech-pundits-dont-get-about-facebooks-1b-instagram-deal

 

[Chris_Anonymous]

From another message board forum:

"A lot of people don't understand the mechanics of it all. If you view the picture in facebook's theater mode, you see one ad. If you view it in normal mode, you see 7 ads. This is per picture/view.

So say I post an Instagram pic on facebook. Let's say I have 400 friends. 100 of my friends view the picture. FB just earned 700 advert views.

Let's say I'm one of those people who have 1000 friends, and a lot of them are sycophants. That pic gets 500 views. Thats 3500 ad views FB just earned. And this is for one picture.

30 million users times X pictures posted times Y friend views times 7 ads.

Can you see how this can ramp up really quickly?

EDIT: for those of you who are bringing up "clicking ads", there are 2 types of ads: Click-through and Impression ads

http://en.wikipedia.org/wiki/Cost_per_impression

http://en.wikipedia.org/wiki/Cost_Per_Click

http://en.wikipedia.org/wiki/Online_advertising"

 

[MadeMan]

Just another sign of a too big to fail atitude !
Remember AOL baxk in the 90s !
Btw social media type of thing is just a fashion thingy u dont know what
A popular sentiment change will cause , aswell as facebook is just a channel
Ok it has its roots growing everywhere but that woule lead to a nice POP! In the
New web 3.0 world

But hey ! wahteva!

 

[peilthetraveler]

Quote from Chris_Anonymous:

From another message board forum:

That makes sense,but why does facebook need to OWN this company for 1 billion dollars? Instagram already lets users update to facebook on their app.

I mean, why are they buying the cow when they get the milk for free?

 

[FreakofNature]

This is when billionaires make billions, when they see stuff no one else does.

You would think Mark Z. knows something the rest of the world does not.

 

[stock777]

They a worth 3 billion.

 

[EON Kid]

Quote from FreakofNature:

This is when billionaires make billions, when they see stuff no one else does.

You would think Mark Z. knows something the rest of the world does not.

thats right, he ran the numbers & the other side also knew some numbers.

 

[mm19]

paying 1b for these guys makes FB look cheap and value for money

thats the whole idea.

 

[tenthousandmen]

Quote from hajimow:

I installed instagram today. I palayed with it for a minute. I noticed that there are at least 10 apps, available doing the same thing. I bet there will be 100 more in less than a month. It is really an easy app. Just image processing. Nothing else.

I noticed this too

although the diff between instagram and the other 'old camera' camera apps is that it lets you share....imo I never cared about this part. I guess allot of fruit cakes who also use twitter (noticed that half the top twitter accounts w/ the most followers are homosexuals?) got into instagram taking pictures of everything and uploading.

 

[ChkitOut]

Quote from Grandluxe:

This is the way you make money my friend, not day trading in stocks. To the young kiddos out there, want to really make good money?go learn programming, get a good developer and monetize the product, thats where the real money making frontier is.

you never hear about the thousands of failures that never make a dime in tech world. every business is the same my friend, you always hear about the top 10 making hundreds of millions, pick any field, its all the same shit.