The Instagram effect on your business
A few weeks ago we wrote about the “mission-critical” importance of Tweeting business leaders. Why is that? Put simply, CEOs who communicate freely using social media are held in higher regard – not just by employees, but by customers too, study after study shows. An organization where the boss Tweets is an organization where internal communications is more dynamic and transparent. That then has an impact on external comms, or the brand image portrayed to the public.
Let’s head to another end of the organization now, to the developers, engineers and coders where some of the best ideas and brightest innovations are emerging in the business world, as evidenced by the run-away success of Instagram. I’ve professed my fandom for Instagram in this column before. In under 18 months, it has amassed a user base of 35 million people who swap photos on the go. What’s almost as impressive is the number of employees at Instagram: 13.
No wonder Facebook this week acquired it on the cheap for a cool $1 billion. Why cheap? That’s about $30-a-user acquisition price, historically low by tech M&A standards. And these aren’t just any old users. They are younger, more mobile and more tech savvy than Facebook’s core audience (though there’s plenty of overlap, to be sure). In short, these are the kinds of customers that the companies of the future will be courting. Yes, they are demanding, but they are generally more loyal and just meeting the demands of their usage patterns creates a built-in innovation loop in any organization.
This then brings us to the importance of coders, designers and engineers who have the room and buy-in to innovate. Given the opportunity they will be developing tomorrow’s Instagram and the new markets that go along with it. This is the formula for successful innovation in today’s business world. We’re reminded of it by 13 newly minted mega-millionaires. A powerful message.
Speaking of powerful messages… We have you covered on the topic of the big innovations that will transform the business world this year and next. Where? At Social Media Influence 2012, our annual conference in June. Dynamic leaders from GE, Unilever, Microsoft, Google, London 2012, Conde Nast and many more will take you through the big innovations and trends that are transforming the business world today and will help you cash in tomorrow. Come join us!
- Bernhard Warner
editorial director, SMI