Why Instagram is worth every cent of it’s $1billion purchase price

There has been much speculation about Facebook’s motives for buying Instagram.  Much of the furore has been negative, slating Facebook, Instagram, its users and creators and just about anyone with any connection to the two companies involved in the deal.   What have all these commentators missed?   It’s obvious when you take a critical look (and the animated infographic below will make it v. clear).

CNET, Forbes, Slate.com, telegraph.co.uk and others maintained Instagram’s acquisition was Facebook’s way of getting new users and their data, and breaking into the mobile space more convincingly.   They then went on, with varying degrees, to slate Instagram as a flash-in-the-pan provider of mere photographic filters with zero prospects and a poor investment.   What seems to have been entirely ignored in the hullaballoo is that design and product development are at the heart of Instagram’s experience.

Consider this.   Facebook, it’s employees and leading lights think of themselves as user-minded and hyper-focused on product improvement.   Facebook’s purchase of Instagram when seen through the lens of ‘How could Instagram improve Facebook‘ suddenly makes sense.

Consider the fastest growing social network right now, it isn’t Facebook or Google+, its Pinterest.

  • What is Pinterest’s USP?  It’s visual means of communication;
  • What does Instagram do?   It enables people to take instantly arty pictures and use their smart phones to share these – something which, until Instagram did it so slickly, no-one had enabled before.

So, the fastest growing social phenomenon (sharing pictures via social networks) hitches a ride on the coat-tails of the fastest growing means of communication (mobile) and is delivered as a slick user experience so simple, your grand parents could use it.

This clever little animated infographic tells it like it is.

Purchase of Instagram
Created by: Online MBA Programs

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