Facebook Instagram video service

The new video feature in Facebook Instagram is a smart move by Mark Zuckerberg. For He fulfills the desires of two groups the users and the advertisers. Facebook Instragram made it exciting. He wanted to introduce “a great idea” oracle CEO Mark Zuckerberg and invited but actually by all regular mail letter to the headquarters of Internet giant in Menlo Park, California What followed was disappointing observers such as stock market initially. “Instagram” which Facebook acquired for $ 715 million photo app, you can now also play videos. Once again, Facebook Instagram took it merely an idea of the competition. The “Instagram” Novelty is a copy of the Twitter product, “Vine“, a way to recording 6 second videos and play in a continuous loop.
This may sound absurd to some people, but a lot of trips With 13 million users, is “Vine” become so successful that Zuckerberg had to respond. Facebook is convinced now offer a superior service if “Instagram” can take a full 15 seconds, a video sequence. “Long enough not to limit creativity, and short enough that the high load times remain acceptable” reasonable “Instagram” CEO Kevin Systrom. There are also several filters and a stabilizer to smooth out shaky shots. Stock brokers had a more important “big idea” is expected. Therefore, Facebook lost on Thursday, the day the video presentation on the financial $ 968 million in value.

PC use break from Facebook

This negative judgment is perhaps premature. The video foray could actually turn out to Facebook as a successful coup. And be crucial for the future strategy. Facebook must succeed to extend the advertising business on mobile devices. Users maintain their Facebook friendships increasingly via smartphone. Therefore, the revenue of the company, Zuckerberg dropped out of PC advertising in the past twelve months by 18 percent. This trend is continuing. The company succeeded though, with its 751 million mobile users from the state to reach a mobile advertising revenue of 375 million dollars in the first quarter. For the full year, the revenues could even be 2 billion dollars, according to market research firm e-Marketer. However, the potential static displays on smartphones is limited. Users react increasingly annoyed when more and more advertising space included in the message stream. Facebook’s highly acclaimed system that is supposed to only display ads that you feel because of their personal data to be relevant, work still not right. Facebook recently emphasized many promotional products introduced with great fanfare, because they were ineffective or simply disgruntled users.

Advertisers want moving pictures

This is where the videos. They are advertisers, the moving images from TV appreciate that provide a good environment. Videos are as popular as photos, may soon billion of it on Facebook appear. Similar to the “Daily Prophet” the newspaper in Harry Potter’s magical world could then run the images. Facebook would be more attractive. Jean Pierre Fumagalli, head of the motion picture Smart Clip advertiser, the approach of the world’s biggest network will therefore clever. “Users create videos and distribute them also on the network“. The time is right because the Asians publish daily 20 million photos on the internet, half on Facebook. The technique for the step motion picture. Many smartphones now have a high resolution video camera.

Modern mobile networks can load the movies on the Web with no waiting time. “At the start of ‘Instagram‘ we have waived videos because the technology was not there yet,” Systrom said. With only 1.8 percent of the total business of the mobile display advertising market is still tiny. But in two years, the share could rise already to six percent or $ 29 billion, estimates the advertising agency ZenithOptimedia. Smart Clip Fumagall boss sees the advertising revenues on smartphones currently at “no more than ten to 17 million Dollars.” But even there, the market doubled every year.