Instagram has been a valuable asset to Facebook as it appeals more to teens and young adults while Facebook is increasingly becoming a tool for an older crowd.
Still, Instagram also benefited from being a part of the Facebook family. Debra Aho Williamson is an eMarketer analyst. She says, “The challenge with Instagram has always been balancing its strong desire for independence, with the need to make Instagram a part of the Facebook machine.” She notes that part of the reason Instagram was so successful from a business standpoint is that it used the Facebook advertising system. When Facebook bought it, Instagram did not show any ads.
Controversy over Advertising?
Systrom used to manually check all ads that Instagram showed. He wanted to ensure that each one matched the look Instagram was going for.
Another company Facebook acquired WhatsApp. The former CEO of that company, Jan Koum, resigned her position in April. He is vocal against advertising and said that he would take a stand if Facebook ever pushed WhatsApp into changing in order to make more money.
