Look Out YouTube And Other Video Platforms: Here Comes IGTV
When Facebook scooped up Instagram for what was considered to be the staggering amount of $715 million in 2012, many questioned the wisdom of Mark Zuckerberg. Now, he looks like a genius.
At the time, Instagram had 30 million users and zero revenue. But by replicating features of Snapchat, offering reasonable advertising rates and analytics and now launching IGTV, Instagram and Facebook have become two very big dogs in the social media kennel.
How big? A recent analysis by Bloomberg Intelligence pegs Instagram’s value at more than $100 billion—roughly 100 times more than the acquisition price. Some estimates say Instagram could generate in excess of $5 billion in U.S. ad revenue this year, which would represent a rise of some 70% over 2017.
Zuckerberg’s gamble back in 2012 has paid off in more ways than just valuation. One of his motivating factors was keeping Instagram out of the hands of Twitter, which had also made an offer for Instagram and now has a fraction of Instagram’s users. In hindsight, Instagram also can be viewed as sort of a Social Security policy for Facebook, because as younger people leave the platform—or never bother with it to begin with—many end up on Instagram, along with more than a few of their parents.
A longer-form video format within Instagram and also a separate app unto itself, IGTV is causing shockwaves among content creators and distributors, and for good reason. While it won’t be dependent upon advertising revenue because, at least for now, it won’t contain ads, there’s always the possibly, as Forbes points out, that Instagram could ultimately launch a paid version that blends both native and outside content.
In the meantime, what IGTV undoubtedly does is provide a formidable competitor to YouTube. In this regard, IGTV comes at a good time because plenty of YouTube creators aren’t happy with the way they’ve been treated when it comes to what users see their feeds and the amount of revenue that YouTube shares with creators. Plus, YouTube is less a social media platform than a humongous digital warehouse of user-generated content.
IGTV’s birth helps to explain why the premium YouTube Red service has been bifurcated into YouTube Music and YouTube Premium, the latter of which is now locked in a duel with IGTV.
It’s no surprise that many brands have already flocked to IGTV with their own content, particularly those prone to using influencers. As Digiday reports, Chipotle, Nike, Netflix, Warby Parker, Trader Joe’s, Everlane and Gucci are among those testing IGTV. One of its biggest challenges will be whether Instagram users want to view videos longer than a few minutes on their mobile phones.
There are a couple of lessons to be derived from the smashing success of Instagram. First off, the big just keep on getting bigger in the video world, whether it’s Instagram extending itself into longer-form content or AT&T bulking up vertically with Time Warner Inc. and AppNexus. While one could have an endless debate over controversies like net neutrality, it’s hard to dispute that consumers have more choices for gorging on sight, sound and motion than in the history of mankind.
Second, the success of Instagram Stories on the back of Snapchat Stories and other features copied by Instagram shows why being a “first mover” in the digital space isn’t a guarantee you won’t become the last mover. In the case of Snapchat, which just went through a rather botched redesign, while the early bird does usually get the worm, the earliest worm doesn’t always get eaten in a good way.
It just gets eaten.
House of Brinson + Studio Brinson
6 年It’s not searchable. Seems hard to justify investing much for certain categories.
Exploring how AI accelerates growth for your business
6 年Problem I have is most people I consult default to video for sharing information, irrespective of whether it's the right medium. Often it isn't - but the video arms race means the blinkers are on and ignorance reigns.
Senior Manager, Communications and Marketing at Niagara Parks Commission
6 年Very well written piece Mat Baxter!
?? Content Manager @United Platforms - ingatlan.com, Használtautó.hu┃??? Freelance journalist & podcast host
6 年I'm excited to see what the future holds for IGTV - so far the people I follow have not been very active in uploading and the browse feature is not quite perfect, but I like the idea of longform videos in a more casual, less edited style, great for creators who are very active in stories!?
Managed IT Services | Business Development Manager
6 年This medium will highlight the difference between a social experiment tool (YouTube) and a Brand Yourself medium (FB,IGtv) If google had one human that worked there, they’d dominate the world. Lucky for us, they treat there customers like lab rats, changing algorithms and monitoring behavior after 30 days of no water, no light and loud music. The overall message here, is engagement value and ease of use to level the field. YouTube is a carrot on a stick, seemingly endless opportunity. Until you figure it out and they change the rules. IGTV will likely do the same over time but the root of the platform is the quality of the content and engagement. Always has been. You can’t overupload to capitalize on attention, you can’t over-tag to be everywhere at once. You have to have something to say and say it well. YouTube has nothing to fear until the rest of the community shares this perspective and frankly, the revenue for ads. Tl;dr Human after all.