Twitter Inc has now one more reason to worry. Facebook Inc said Tuesday that Instagram has grown to more than 400m users with 100m of those added in the past nine months. With this addition, it surpasses Twitter, which has 316m monthly active users.
Rising global clout for Instagram
Facebook acquired Instagram for $1 billion in 2012, and seeing the number of users, it looks like a good buy for Facebook. Research firm eMarketer expects Instagram’s ad revenue to reach $1.5bn in 2016 and $2.8bn in 2017. eMarketer forecasts global ad revenue of Instagram for the year will be $600m.
More than 75% of its users live outside the U.S., said Instagram. The surge in the global user base for Instagram is well timed as the app is also witnessing growing ad presence worldwide. More than half of Instagram’s 100m new members come from Europe and Asia, while Brazil, Japan and Indonesia contributed to the maximum number of new users.
In June, the service was used for sharing 70 million photos on a daily basis, and now this number has risen to more than 80m. Celebrities that recently joined the app are David Beckham and Caitlyn Jenner.
Twitter woes continue
The race between Instagram and Twitter Inc for ad deals and eyeballs has become more intense after the Facebook owned firm made its recent push into advertising. Earlier this month, it expanded to more than 30 countries. Instagram, who tested ads on the platform two years ago for the first time, bolstered its ad offerings recently.
Twitter was already under pressure with the mounting popularity of Instagram, and now, after the latter overtaking it, more investors could drop out. The problems for the micro-blogging firm don’t seems to have an end. Its CEO search is still on, investors and employees are losing confidence, and it’s facing the constant exodus of key executives.
Latest to join the list is Twitter’s senior director of engineering, growth, and international teams, Akash Garg, who on Tuesday announced his exit to join Uber. Garg said he will be leading the mobile and web engineering teams there.
Garg’s exit comes at a delicate time. Twitter Inc has been without a permanent CEO for more than 100 days now, and it lost three product executives in July as well. In a recent report, The Information stated that the firms engineering department is more fragile than it may appear to the customers.