Skip to main content

What Facebook will do with Instagram

By Andrew Mayer, Special to CNN
updated 3:26 PM EDT, Wed April 11, 2012
Facebook has much to gain in acquiring Instagram, says Andrew Mayer.
Facebook has much to gain in acquiring Instagram, says Andrew Mayer.
STORY HIGHLIGHTS
  • Facebook acquired the popular photo-sharing site Instagram for $1 billion
  • Andrew Mayer: Deal will gain Facebook users and a stronger hook in the mobile market
  • He says the real use of Instagram is to help Facebook grow its advertising revenue
  • Mayer: It's a smart move for Facebook to try to create a more personal marketing experience

Editor's note: Andrew Mayer is the creative director of Sojo Studios, a social gaming company. Follow him on Twitter.

(CNN) -- If you've seen "The Social Network" or taken a few minutes to really look at your Facebook page, you may have started to figure out that what you get out of Facebook and what Facebook gets out of you are very different things. As a MetaFilter commenter once said, "If you're not paying for something, you're not the customer; you're the product being sold."

This week, Facebook acquired the hugely popular 2-year-old photo-sharing site Instagram, paying an astounding $1 billion. Even though it was available only on Apple devices until last week, Instagram has attracted 30 million users who upload about 5 millions photos every day. With its filters and other features, Instagram helped make amateur photography a lot better-looking.

Aside from picking up a bunch of snap-happy users who'll push their Instagram photos to their Facebook timelines, what is it that Facebook really gets from its big purchase? After all, Facebook already has smart ways to display pictures, and users are uploading 250 million of them each day. So it's not more pictures that Facebook needs.

Andrew Mayer
Andrew Mayer

Sure, the deal will help Facebook get a hook in the mobile market. That's important because Apple hasn't made it easy for Facebook to move its empire onto smart phones despite a fairly snazzy app. Facebook only has to look at the numbers to know that more and more people are doing what Steve Jobs once referred to as "interpersonal computing" on their handheld devices.

That's all good stuff for Facebook. But there's something Facebook gets from buying Instagram that could be even more valuable in the long run.

What's the appeal of Instagram?
Facebook's billion-dollar buy
3 things you didn't know about Instagram

When you are the product, Facebook needs to sell you to somebody; namely, the advertisers. It's a pretty straightforward transaction: Someone pays Facebook and uses the copious and detailed information that Facebook has gathered about you to stick a targeted message into the "sponsored" message area of your screen when you log in to your account.

The problem is that right now, most of those ads feel like spam, or at least slightly improved versions of those horrifying ads for miracle creams and belly fat reduction that have been all over Internet.

To help make those ads more interesting, Facebook has come up with something it calls "Sponsored Stories." You may have seen them show up. They're your friends' posts being repurposed as ads and placed straight into the sponsored section of your Facebook page.

Posts as ads may sound scary, but in a world where we're constantly being bombarded with advertisements, there's something almost comforting in knowing that your friends are slowly becoming a more powerful tool for advertising than many of those million-dollar ad agencies pushing Budweiser or insurance policies at you. Certainly, you're more likely to care more about the endorsements of your friends than any celebrity, even if it's Angelina Jolie.

But so far, most of those "Sponsored Stories" are primarily made from words. With only a tiny bit of space for a sponsored ad, a picture can be worth a thousand words. And here comes Instagram's role: By allowing people to push their images straight into their Facebook feeds (and straight out again as a commercial), Facebook has a unique powerful tool for integrating images in a way that were only dreamed of before.

How would it work? Imagine that I take a picture of a new Fiat 500 through Instagram and posted it to my Facebook timeline along with my text. "Just saw the new FIAT 500. Looks cool! (Like!)" Facebook will want to sell that post back to Fiat as something the car company can promote on my friends' pages. Turning that image into an advertisement means that my endorsement stays on my friends' pages long after the original post has been topped by other updates.

Because Facebook usually gets paid only if someone clicks on an ad, this kind of advertisement works to its advantage, since it is way more personal, is way less spammy and adds genuine value to your experience. ("Andrew is into Fiats? I'll have to call him up when I buy mine.")

Like it or not, brands are something that have been deeply integrated into the fabric of our lives (as has Facebook). Facebook's success proves that most of us don't mind sharing our lives directly with our friends. After all, it's a less lonely life when you know that your friends have something to say about everything you do. By using Instagram's images to sell that feeling of personal connection directly to advertisers, founder Mark Zuckerberg can grow Facebook's ad revenue while creating a marketing experience that seems more personal and seamless to the users.

For a company that's about to go public and already competing head to head against brilliant, powerful businesses like Apple and Google, adding the power of images to its mix of personal stories and marketing seems like a smart move.

Follow us on Twitter @CNNOpinion

Join us on Facebook/CNNOpinion

The opinions expressed in this commentary are solely those of Andrew Mayer.

ADVERTISEMENT
Part of complete coverage on
updated 8:24 AM EDT, Fri May 24, 2013
Pepper Schwartz says with the constant drumbeat of scandals in armed forces, the military must require education programs to teach men self control, address culture of sexual entitlement
updated 8:30 AM EDT, Fri May 24, 2013
Gayle Sulik says the reason the BRCA1 gene mutation test for breast cancer risk -- the one Angelina Jolie had -- costs so much is that a company owns the gene and sets the price.
updated 10:26 AM EDT, Fri May 24, 2013
John Sutter says the Scouts' plan to welcome gay Scouts but not gay adult Scout leaders doesn't make sense.
updated 9:53 AM EDT, Fri May 24, 2013
Dean Obeidallah, Margaret Hoover and John Avlon's Big Three podcast takes on the New York mayoral race's new candidate, GOP hypocrisy in Oklahoma relief funding and Bloomberg's comment on who shouldn't go to college
updated 9:25 AM EDT, Fri May 24, 2013
Despite dramatic terrorist incidents, the terror threat that led to 9/11 has been defeated, and Obama is right to say the U.S. should move on, says Peter Bergen
updated 9:11 AM EDT, Fri May 24, 2013
The Louisiana governor says there's a common theme in the IRS controversy, the seizure of phone records from The Associated Press, and the efforts to rally support for Obamacare.
updated 8:20 AM EDT, Thu May 23, 2013
Melissa Brymer says children need special attention to recover from the trauma of the tornado, and parents must be patient and calm
updated 7:38 AM EDT, Thu May 23, 2013
Will Marshall says Tim Cook was grilled about Apple's tax practices but the real culprit is a dysfunctional tax system.
updated 9:44 AM EDT, Fri May 24, 2013
Peter Bergen says there's a great deal of misinformation about the counterterrorism policies President Obama will address in a speech Thursday.
updated 8:47 AM EDT, Wed May 22, 2013
Two decades ago, Joshua Prager was one of more than 20 people in a terrible bus crash. The author revisits the scene to see how others have made sense of the event.
updated 4:20 PM EDT, Wed May 22, 2013
Joshua Wurman says tornado deaths can be reduced, prediction and preparedness can be improved, but it's up to individuals to make sure they heed warnings and have a safe place to go.
updated 10:57 AM EDT, Wed May 22, 2013
Ruben Navarette says under Obama, a record number of immigrants have been deported. So why is his drive for immigration reform now in conflict with enforcement officials?
updated 9:34 AM EDT, Wed May 22, 2013
Nathan Gunter says Okies have learned to love the big sky, but also to watch it carefully for signs of trouble: When the sky betrays us, we cope by helping one another.
updated 9:33 AM EDT, Wed May 22, 2013
LZ Granderson says the heroics of teachers who shielded kids in the Oklahoma tornado remind us of what they do for our country
updated 7:26 AM EDT, Wed May 22, 2013
Tornado researcher Louis Wicker says progress is being made on understanding and predicting extreme storms, but if you hear a warning, take cover immediately
updated 7:29 AM EDT, Tue May 21, 2013
The masked henchmen grabbed three fingers on each of the Syrian political cartoonist's hands and pulled them back all the way -- so far that they cracked.
updated 11:22 AM EDT, Mon May 20, 2013
Meg Urry says loss of the failing, planet-finding Kepler satellite would be huge for NASA--but one way or another, it's a matter of time before we find signs of life on other worlds
updated 12:21 PM EDT, Tue May 21, 2013
Yahoo isn't buying a technology company so much as the community that uses it, Douglas Rushkoff says
updated 11:15 AM EDT, Tue May 21, 2013
Joseph Nye says it's far too early to write off the rest of the president's second term because of the IRS controversy, other issues
updated 7:32 AM EDT, Mon May 20, 2013
Elizabeth Dunn and Michael Norton write that people pass up opportunities to spend their money to avoid disagreeable tasks
updated 9:45 AM EDT, Sun May 19, 2013
Bob Greene on how 18th century Americans tried to make sense of the day with no sun
updated 8:57 PM EDT, Fri May 17, 2013
With guest Rep. Keith Ellison, John Avlon, Margaret Hoover and Dean Obeidallah discuss the president's scandal trifecta, hope for immigration and what Jolie's revelation means for women.
updated 1:09 PM EDT, Fri May 17, 2013
The press has turned on President Obama with a vengeance, writes Howard Kurtz
updated 2:01 PM EDT, Sat May 18, 2013
Donna Brazile says our democracy is endangered, not by the Russians, North Korea, Iran or even terrorists. To quote Pogo: "We have met the enemy and he is us."
updated 1:59 PM EDT, Sat May 18, 2013
Photographer Arne Svenson defends his show "Neighbors," portraits of the occupants of a building near him taken through their windows.
updated 9:37 AM EDT, Mon May 20, 2013
Theater critic Kevin Williamson was kicked out of a play when he took the phone away from an audience member and threw it. He says it was worth it.
updated 10:25 AM EDT, Sat May 18, 2013
U.S. actor Angelina Jolie (L) holds daughter Zahara as husband and actor Brad Pitt (C) carries son Maddox during a stroll on the seafront promenade at the historic Gateway of India outside their hotel in Mumbai on November 12, 2006.
Gil Welch says women must not panic over Angelina Jolie's mastectomies: 99% of women don't carry the BRCA1 gene.
updated 4:52 AM EDT, Sat May 18, 2013
JR's "Inside Out" project brings public spaces alive with giant representations of people
updated 3:22 PM EDT, Fri May 17, 2013
Roger Colinvaux says the IRS scandal is fundamentally about disclosure of donors, not tax-exempt status.
updated 11:14 AM EDT, Thu May 16, 2013
Maia Goodell says the military should use civil legal remedies on sexual assault cases.
ADVERTISEMENT