In this series, I am going to talk about how mobile applications address their users’ needs and maintain their revenue of income.
How does it address user needs?
First of all, the users want a place to share images without dealing with complicated social relationships, often required by other social media platforms. Instead of adding more to their app, Instagram strips things down to the core minimum. Users can simply scroll up to view more content, and tap twice on the image if they like it. These interactions require very little cognitive processing power. Also, the design of Instagram timeline emphasizes the visual content to the maximum as compared to text content. Instagram really is a platform where users communicate in visual content.
Secondly, Instagram provided a way of “documenting life” at the age of mobile phones when quality camera is a standard hardware component. It’s fast, easy and instantaneous. It allows users to post their sharable moments anytime any place with minimum effort. Everybody becomes a star on their digital center stage, and filters made the moments artistic looking.
How does it take context into consideration?
There are two key tasks users do on Instagram: sharing and viewing. For the first task sharing, Instagram understands that if user is on-the-go and snaps a sharing worthy picture, they would like to share it as soon as possible, meanwhile still make it pretty. Instant is the key here. As opposed to adjusting a dozen of different parameters on a professional camera, Instagram provides simpler options to save users’ time in extensive image processing.
For the second task viewing, Instagram offers the simplest kill-time activity. Users are most likely using fragmented time during daily life to view their Instagram feed– riding the public transportation, waiting in the line, or even using the bathroom. In these scenarios Instagram is not the main task that users are focusing on, therefore it should require minimum effort. Both scrolling and double tapping are so easy to achieve with only one hand, with a large target area on your screen.
What interesting tech enablers it use?
I think the preset filters are probably the most interesting tech enabler that Instagram uses, also cameras are a given.
Value proposition:
For ordinary people who are non-professional photographers, who have the need to share and document their life moments, the Instagram App is a social media tool that allows easy sharing and editing of your images on-the-go. Unlike Flickr, which is often not used for phone camera photography, Instagram is more mobile friendly.
Revenue Resources:
Instagram currently has two main revenue channels:
- Sponsorship
This was rolled out within the last year or so. Instagram began to show sponsored contents to users based on their information collected by Instagram, Facebook, and third party apps. In the sponsored posts, merchants can include links for users to click. Instagram charges the merchants for the sponsored contents.
- Data collection
Instagram collects a good amount of data from its users, especially after it being purchased by Facebook. Many users link their Facebook accounts with Instagram accounts, which together create a comprehensive image of user profile including their demographic background and social behaviors. The data that Instagram and Facebook (its mother company) can sell include but is not limited to: users’ geographic location, users’ travel pattern, keywords, users’ following pattern, users’ sharing habit, etc.
These data in turn, can help Instagram better market its business product like advertising placement to merchants who can target potential customers on Instagram.
How is it defensible?
Instagram is not a complicated app like I said. In fact, many apps allow you to take pictures and apply filters and share it on social media now. However, most companies won’t try to replicate its product without innovation.
First of all, timing is key. Instagram is one of the first handful companies that started the visual content based social media platform. Its chronological feed that always presents the latest content first guarantees users to stay up-to-date. Now this concept is no longer fresh, it will yield less return for someone who tries to replicate the model.
Second of all, its huge user base and reputation eliminates any potential competitors. Once Instagram did its job well, it just flew from there. Statisia shows that Instagram reaches 600 million active users in December, 2016. Other content sharing social media platforms that can reach this altitude worldwide might only be Facebook, which is already Instagram’s mother company. At this moment I don’t think any competitor can simply repeat Instagram and obtain such a big user base.
In addition, the accumulated visual content makes Instagram sticky for users who are already using it. There is no convenient way to transport all of your past images onto another platform. As a result, users might not migrate easily considering the cost and their established network on Instagram.