More than a quarter of the revenue of Facebook account for Instagram

More than a quarter of Facebook’s revenue last year brought a Instagram app to share photos, which Facebook bought for $715 million in 2012. It is reported Bloomberg, citing insiders.

Instagram has brought about $ 20 billion of advertising revenues in 2019, said the sources on condition of anonymity because the figures aren’t public. This exceeds the revenue of YouTube, which is earned by selling advertising 15.1 billion dollars — this information was first released yesterday by parent company Google Inc. Facebook declined to comment on the news.

Instagram is a key asset for the future of Facebook. Facebook was long seen in the Instagram side project, but the service was growing faster than expected. Even the recent scandals with Facebook, Instagram spared, although it seems few people have any illusions about the fact that the policy on personal data at the two services differs. However, users (and after them, and advertisers) continue to go into the service for personal messages and photos, while Facebook itself in a tendency to the declining growth in advertising revenue.

Facebook did not disclose revenue from Instagram separately in the report, instead preferring to highlight the service in the category of “family of applications”. Zuckerberg is now stronger interferes with the performance of “daughter” — for example, the team responsible for private messages in Instagram, now reports to the team Facebook Messenger and Instagram, the brand changed to “Instagram from Facebook”. In 2018, the number of Instagram users has reached 1 billion.

Instagram was not the business model when the company was acquired by Facebook. Now the app makes money the same way as Facebook: selling advertising that looks like regular posts in the main application ribbon and the “storis”. Zand the last couple of years, Facebook has increased the frequency of advertising at Instagram, to help boost the company’s sales, while the Facebook news feed richer marketing posts.

a Significant contribution of Instagram in the total sales of the company explains why CEO mark Zuckerberg is actively against the appeals division Facebook, which was announced by us Senator Elizabeth Warren, the democratic candidate for President.

the Verge has previously published a transcript of the audio recordings two-hour session of questions and answers Chapter Facebook and employees of the company. As follows from the document, Zuckerberg believes that the company will have to sue Elizabeth Warren, if she wins the US presidential election in 2020 and will take a course on the termination of the monopoly of Internet companies.

Elizabeth Warren has proposed to introduce to the Antimonopoly legislation, the concept of “platforms for General use”. This will include companies with annual revenue of over $25 billion offering for General use on the Internet marketplaces, or exchanges of a platform for communication between the parties — thus, the definition of get and Amazon, and Facebook, and Google. It is necessary to prevent technological mergers, which the Senator considers anti-competitive. The politician claims that these mergers and acquisitions caused damage competition.

If such a law is adopted, for example, the Amazon Basics brand need to be detached from the Amazon Marketplace, and Google’s advertising network from search engines. In addition, Warren proposes to repeal many anti-competitive mergers of technology companies, including the acquisition of WhatsApp and Instagram company Facebook, Waze, Nest and DoubleClick, Google, and Whole Foods and Zappos by Amazon. Elizabeth Warren believes that such reforms will not impact globally on Internet: the small business will have a chance to compete with Google, Facebook or Amazon all of which will also provide services to users.