Mark Zuckerberg, one of the world’s most recognized entrepreneurs, has indeed reached the pinnacle of success with huge net worth, public recognition and successful ventures. But for Facebook CEO and Founder, many have wondered whether he is the owner of Instagram. Although uncertainty remains, it is widely agreed that Zuckerberg’s influence is felt strongly even beyond just Facebook.
The Pew Research Centre revealed that 78 percent of Americans use Facebook and up to 43 percent of users have it installed on their mobile device. According to the Pew study, women on average engage more than men, 35 percent being aged 18 to 25 years, and 68 percent being aged 26 and up.
Founded by Kevin Systrom and Mike Krieger in 2010, Instagram was acquired by Facebook in 2012. The combination of Facebook and Instagram further perpetuates their almost ubiquitous existence on smartphones. Having its own platform, Instagram turned out to be a major success for the Zuckerberg empire. Equally important, the combination of Facebook and Instagram captures up to 70 percent of the social media photo-sharing market.
Speculation arose, whether Zuckerberg really does own Instagram. According Business week, there’s no definitive data, however, both Systrom and Krieger were given ample shares in Facebook and privileged equity options when the Instagram deal went through, suggesting that Zuckerberg had full control of the firm.
It is conceivable that the overall structure of the purchase may have been spearheaded by Zuckerberg, however, in reality, he ‘simply’ bought Instagram and the deal was handled by key members of the Facebook management, including Chris Cox, CFO David Ebersman and Karandeep Anand. According to CNBC and many other sources, Zuckerberg’s ‘stutorial and unquestioned power’ enabled the purchase of Instagram, which rapidly became renowned as modest app success story whose fame was soon to boost into multi-billion dollar market asset.
An area to note is that in comparison to the Mark Zuckerberg owned firm, the Instagram product is strikingly dissimilar from that of its parent company, embodying a ‘smaller, engaged and more intimate’ consumer base. While symmetrical structures between the two companies can be observed in design, engineering, product and data science, Instagram has very much stood apart as a distinct and revolutionary entity.
An area of interest is the influence the firms have had in the industry since 2012. Mr. Zuckerberg and his team have since made few if any errors in their efforts to expand and evolve in accordance with the rapidly e-shifting market segment. Other companies in the segment, including Twitter and Reddit, have both benefited from the success that Instagram and its parent company, Facebook, have enjoyed and helped to pioneer.
Advantages of Combining Facebook and Instagram
Zuckerberg’s decision to buy Instagram, combined with its strong user base, has allowed for an infiltration into the mobile market and for the Instagram community to access a vast number of features on the Facebook network. With a single tap, Instagram users are now able to share their photos on both platforms, instantly.
For a company already devoted to mobile, Instagram delivered the necessary innovation. Its all-important mobile tools, that have since grown user engagement, have provided Instagram a monopoly in many regards and a distinct competitive edge, allowing millionaires to be potentially minted overnight.
In essence, Instagram continues to be an extremely profitable asset, enabling Facebook to directly monetize its activities. Advertising, tools and merchandise have been extensively utilized on both platforms. Facebook’s implied ownership of Instagram certainly aided in its advancement and the sharing of resources, however, the clear difference in each product has been carefully maintained.
Instagram’s parent company provides improvements to the user experience and helps to cultivate better user-engagement. Unlike Twitter, announcements issued by Instagrams parent company inform users that their personal data is secured, connoting a sense of privacy and trust to the general public. These distinct advantages, possessed only by the two organisations, could be argued to be one of the major contributors to the success that both firms have to date experienced.
The Impact on Zuckerberg’s Global Recognition
In the public light, Mark Zuckerberg takes the credit for the immense success of Facebook, as well as the merger with Instagram. It is due to these achievements that Zuckerberg has become so highly recognised, and that his image as a business leader has become so prominent.
Instagram’s worldwide popularity has been a key factor in boosting the awareness of Zuckerberg’s role in the company. As a result, the CEO of Instagram, Kevin Systrom, has gained tremendous public attention and admiration, a testament to the rising influence of the digital world of photography.
Despite continual doubt whether Zuckerberg himself is the owner of Instagram, speculation is often put aside when experiencing the great reach and effectiveness of the combination of Facebook and Instagram – which is open to continuous developments and improvements under the same ownership.
Instagram Becomes the Undisputed Dominator
The decision to acquire Instagram enabled Zuckerberg to take one leap closer to dominating the global photo sharing space. While Twitter and other photo-sharing apps are quickly dying out due to their inability to keep up with the unstoppable momentum of the two companies, the combination of Facebook and Instagram has remained unbothered.
Instagram has been growing at a faster rate than any competitor, with its continuous supply of updates to improve user experience. This type of user satisfaction has resulted in expansive reach, and a clear reason why almost everyone today uses the application.
Zuckerberg also utilizes Instagram to cohesively communicate with his global community. With hundreds of millions users, his posts have certainly gained momentum. In addition, the “Link in Bio” feature has enabled the utilization of Instagram’s organic reach on other social media platforms. All of which placed together point to the glory of Instagram under the careful guidance of Zuckerberg’s supervisory abilities.
Investment Pays Off
Zuckerberg’s decision to buy Instagram has certainly paid off. The buy-in investment of one billion dollars has been returned multiple times over in returns, asset value, and brand awareness, combined with strong user engagement. The emergence of more innovative and creative photography-focused apps has not hindered the firms’ stability.
The two companies have, in essence, remained unshakeable thoughout the past decade, harnessing the power of their technology innovation, commitment to privacy and secure user data. This unparalleled success serves to bond the two organisations as one, and as a result, has enabled a large amount of modern day users to remain loyal to Instagram.
Social Reach Unrivalled
It is difficult to dispute the perfectly balanced execution of gains made from the merge. As analysis shows, the fusion of both companies has in fact contributed to immense public benefits over the past decade. Connecting millions of people together, permitting them to share in the moments of their lives and enabling them to unfold, Instagram has together with Facebook positioned itself as the unequalled leader in the social media space.
Also, the logistical infrastructure and internal processes of the two organisations, when self-contained, allowed for far more efficient, bespoke and unified strategies. While the influence of Zuckerberg’s power may still remain, unbiased observers have nonetheless praised him and the management behind Instagram for their successful efforts in exploring the mobile market.
Conclusion
It is clear that the combination of Zuckerberg and Instagram has been a great success. The product’s recognition among millennials and young adults, as well as its ever-expanding audience, creates a rich and diverse user base with tremendous potential. Without a doubt, it is the inspirational vision and leadership of Zuckerberg that has allowed the firm to break into the global market.
