(Reuters Breakingviews) - Instagram is becoming Facebook’s sugar daddy. The $521...
SAN FRANCISCO - Instagram is becoming Facebook’s sugar daddy. The $521 billion social network’s image-sharing unit is a big reason for the company’s strong first-quarter top-line growth. There’s room to wedge more revenue-earning ads into users’ feeds. The risk, though, is the distractions and dodgy content that hamper the “old” Facebook spread to Instagram.
The app is also critical to bringing in the next generation of users. Snapchat, Snap’s disappearing-messaging service, is the most popular social-media service, according to a recent Piper Jaffray study of 8,000 teens, but Instagram is the most used. Engagement with Facebook’s original eponymous newsfeed is declining, though, and only 6 percent of the teens said it’s their favorite platform.
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Instagram is becoming Facebook’s sugar daddyThe $521 bln social network’s image-sharing unit is a big reason for strong first-quarter top-line growth. There’s room to wedge more revenue-earning ads into users’ feeds. The risk, though, is the distractions and dodgy content that hamper the “old” Facebook spread to Instagram.
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