Biz Daily: Will Instagram be the next UA goldmine?

hello welcome to biz daily I'm John Jordan so what we're talking about today is the rise of Instagram hotting up the rise of Instagram we all know instagram has risen a long time ago so instagram is the photo sharing platform bought by Facebook and now it's about 300 million users so pretty big platform happy sharing videos and photos videos we want own out for mobile platforms are becoming an increasing thing that people trying to share so Facebook is from a do more video stuff in surround setup for doing photos still predominately photos really but it can do more video stuff and but so what we saying rise at the rise in histogram so what we've kind of seen and it's been something that can happen since about June that on facebook has been opening up Instagram as a to

advertisers so kind of we kind of forget sometimes kind of have these in separate wasn't that long ago when people were saying facebook why it's kind of a nice idea but it's probably peaked isn't it kind of hasn't really got mobile and you know how many times do you want to come at share what your kind of cats done or 00 or your holidays photos and all this kind of stuff so this is kind of this is a kind of a skepticism around facebook and what his future was going to be was it had been too highly valued both car stuff and even within Facebook you really get a strong vision for what they were up to i mean they come as if you could have technological kind of hiccups and things they nest didn't happen all this kind of stuff with with different technology platforms didn't really come through and not see gaming dropped off and kind of fairly quickly you kind of 23 years ago and why she kind of kind of written rescued facebook in terms of its business model at least was was mobile

games so not gaming on facebook but mobile games so facebook now makes a large proportion its money from mobile game developers advertising where becames on facebook so it's not just that obviously people are advertising within Facebook for for their own pages and developers are also advertising on Facebook but the majority of mobile app and game development advertising is about games because the game guys it's like the super cells the ea's the machines owns the Kings they have a lot of money hundreds of millions of dollars a year that they're generating and probably you know roughly got thirty percent of that maybe more for some companies may be a bit less for others but about the theater that goes back into into marketing which in many cases is user acquisition advertising on Facebook as a facebook kind of a rose from nowhere really it's only became the big place where people and advertise mobile games that's partly because the occido people use facebook so no we

could go facebook announced that had a billion Canseco concurrent users in one day its most ever a billion that's what I was a seventh of the world's population use Facebook within one day so it's got massive reach also the other interesting thing is of course as soon as you kind of have networks that are underpinned by sociality so you can see what I can see what my friends like so that's for advertisers that's really powerful so things like you know knowing knowing something the gender the age the kind of location kind of interests and stuff that's pretty powerful as well but soon as you can add that to the social groups that your link to it becomes really kind of rich targeting information for the kind of games that you like so the kind of game so i'll be appetizers on facebook pretty much we will be pretty different thorns you'll be advertised unless you're kind of a similar kind of home marketing mix to me and does that spell by Facebookers become must be successful and now it's starting I mean this is still very in the early stages but now please book you

starting to open up Instagram to a similar kind of situation so the interesting thing the news that kind of a spot to this me talking about is today is a couple of companies have announced that they're now allowed officially as being the face book called Facebook um the facebook facebook mobile measurement partners so they're allowed to kind of them provide data for advertisers was a few companies who have to do that if I become a tightly regulated market but I'm there now allowed to offer that for Instagram so that if you're advertising if you're kind of some advertising platforms always kind of analytics platform really you can now get this rich de jure about who's interacting with your ads and stuff which is really what people need to start spending a lot of money you just like to spend millions of dollars advertising your games or apps or whatever you really want to know you know who had that money's being spent where it's being spent in the world what's the result spending that money of people clicking on the ads and people click and he has not done that in the game you know what's going to happen so um we're starting to see that day to

become available and that's really when we'll start to see advertisers spending a lot of money so the really interesting thing was he's always kind of it was conceived with him generals always fight the next war that's were like they kind of from the lessons they learn from the last war and I kind of wondered a little bit with Instagram whether people just seeing Facebook blew up in this magical way and you know people go into Facebook early facebook advertising early before p funds to the power it basically got a lot of very cheap installs their games and that was very powerful well that could really generate businesses and they drive businesses drive a lot of growth salty no one wants to be caught out if a similar gold mine for use repetition arises which instagram said it might be because from is certainly a very different type of platform at least from my point of view so instagram is 21 it's not as big as 300 million users not the over a billion so it's a scale of the third scale difference there and also it seems to me it's much more female-oriented so there's this whole thing with facebook where you know

people's parents were on it and then so the younger generation teenagers didn't really get on facebook because their parents Ronnie it wasn't cool anymore so they were much more using mobile messaging platforms and the Instagram seem to fall into that that thing we used to kind of see a lot of teenagers using it and a lot of kind of kind of female people particularly associated kind of fashion and if you look at the people go to the most followed on on Instagram it's very much the kind of the female fashion celebrity musicians singers Borg you know it gets all these cool cool iveco them kind of actresses models kind of that kind of type of person and they're showing off the fabulous lifestyle all their nails or they're funny cute go or where can I stuff so these people certainly won't play games they will play a certain type of game and kind of whose interesting fakers always just flicking through Instagram I'm really not up our use of Instagram at all ahem but I'm kind of coming to understand how it works a little bit and there but I saw was the game of war so obviously

that may be because it knew that I wasn't a 19 year old girl I was I was a rather older man who potentially was going to be interested I follow a few game companies on there so maybe that's kind of how it triggered a game of war ever but it was very interesting that the most instagram users game of war hey a fairly hardcore long kind of like graphical it's almost like a management kind of resource game no incense how you play the metagame for months and months a month the people who are very powerful kind of players in the game of very hardcore in a very non casual way and that's not really force going to work for instagrams I think the thing with instagram is very early stages yet people going to start advertising using the data and kind of finessing how much they're going to spend it something now maybe people will take some of their facebook spend and put it in Instagram mideast people's takes one there no other other types of spending four different channels and four and try Instagram and see what works but you'd kind of imagine the companies are going to do well at Instagram a perhaps that companies like King level or kind of

casual more female friendly at least games and and maybe zinger who have a certain number of that as well and kind of maybe the oddities will be will be a kind of casino games might work while we're on there cuz they tend to evermore 50 50 ml split games you would imagine will not work so well being out sighs on Instagram are the fashion plans on the racing games or the shooting games all the mobile as that kind of stuff but we have to see oh the moment no one knows the datas any kind of date of platforms ready just be opened so so we'll have to wait for a couple of months to see if it's chrome is the new gold mine for mobile user acquisition or maybe just a gold by Moses silver mind for certain types of mobile game we'll have to find out anyway come back tomorrow and we'll see what the news is in see you then