Instagram: You use Instagram every day, share photos, see reels, follow friends and keep scrolling for hours. But have you ever thought that when Instagram gives you everything free, how does he earn? There is no subscription, no charge, yet this company is earning billions of rupees. Its secret is hidden in your data and attention. Let’s know how this business model of Instagram works.
Free app, but business is bigger
Instagram was bought by Facebook (now Meta) for about $ 1 billion in 2012. Today this platform has become the biggest source of earnings for META. You may use it for free, but in reality you are the real product of Instagram. Every click, every like, and every search becomes precious data for this platform, using the Instagram shows you the same content that you like the most so that you stay on the app for a long time.
Real earning path
Instagram’s greatest earnings are from Ads. When you are watching reels or stories, advertisements of brands appear in between. These advertisements are the biggest source of Instagram’s income. Meta takes money from companies for these ads. But these are not normal advertisements, they are based on AI and data targeting. That is, if you have recently searched the information of a smartphone on Google, then Instagram will show you the ad associated with the same product. This increases the effect of advertisement and companies are willing to pay more money to META.
Influencers are also the key to earning
Millions of influencers on Instagram are also an important part of its business model. When a brand gives money to an influencer for promotion, it also indirectly benefits Instagram. Because this makes users more active, views and ad impressions increase and Meta’s earnings also become manifold.
Data is the real treasure
Instagram studys the behavior of every user closely, which posts do you like, whom do you follow and which videos stop long. All these data are sold to brands as targeted ads through AI algorithm. Even though Instagram does not sell your data directly, with the help of this data gives advertisers a chance to reach the right audience and this is the real earning.
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