Facebook's Instagram Acquisition Irrelevant: Evans

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Nov. 13 (Bloomberg) -- Enders Analysis Strategy Consultant Benedict Evans discusses the value of Instagram to Facebook with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

That it is not as great an acquisition as it looks, but that it is a relevant.


When it was bought, it look like a major strategic win, because you had instagram photos on facebook with a core function . the problem is, instagram is growing really well and facebook is sharing many as well.

What happen if there is not just one alternative product.

The nature of the smartphone and the mobile platform is that you could have dozens of different products all plugging into photo, into push notifications, etc.

Facebook did not find "the" photo service, but merely one of them.

We did a survey and three quarters of u.k. teenagers are using the social network, but half of them are using more than one.

They did not solve that unbundling problem for the service.

Snap chat and others have no intention of selling.

What should facebook have done, or what should they do now?

The crisis for facebook is the mobile opportunity so big that [indiscernible] it doesn't seem that people will give up on using all these other options and go back to facebook.

And it looks like they are finding other ways to monetize.

Just because they are not the only way that people are using does not mean that if that is not doing very well.

They are doing very well.

What if other companies came out with a post to contradict yours saying that he thinks instagram could actually be one of the best acquisition ever?

One of the things he points to is the monetization potential of instagram will stop of course, that is just beginning.

What about that?

Snap chat, at least, does not make any money.

I think what we see is a range of different marketization strategies that flow out of different products.

A product like twitter or facebook or instagram, you have one set of monetization options.

And then you have another set of monetization options with other companies.

It is not like there are no monetization options.

They are just different.

One of the things you could say about instagram is that it is not the same.

What you actually find is that users are using all of these products for everything.

But also photographs and using instagram to arrange for drinks that evening.

People are swapping their usage of these products.

Advertising comes into play as well.

Where does this leave twitter?

We know they tried really hard to buy instagram, but lost to facebook.

I think twitter is off on its own in terms of an operating model.

It is not any particular user model.

It is kind of a blank canvas.

Everyone logs into twitter and you get this blank screen and you say, what am i supposed to do now?

That has been a challenge to their growth.

On the other hand, when you are in there and you are over that hump, you have this very engaging experience.

For some people it is about media.

For others it is about music.

It is about all kinds of things.

In retrospect, i think instagram would have been a great acquisition for twitter, but it does not seem like twitter needs that to become a communications channel.

Facebook is now the most dominant of all that we have discussed.

But down the line between facebook, twitter, snap chat, web chat, which do you see becoming the most dominant?

It seems that facebook will be the single largest project, maybe just like yahoo!

Remains the single largest portal.

But it does not necessarily mean it will have dominance on the desktop.

That is the message of mobile, with its much larger environment and the barrier switching between.

Social networks are sticky in different ways.

I don't think he will necessarily see one big winner.

You also see a lot of regional variation.

Facebook kind of nailed social on the desktop, but no one has mailed it -- nailed it on the

This text has been automatically generated. It may not be 100% accurate.


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