In the late 1870’s the first animated images were sequenced and photographed in real time, kicking off what would become the foundation of the modern day movie. As technologies improve, the way that “moving pictures” are created and consumed, continues to evolve.
Google-owned YouTube, which is used by over one billion individual users each month and has an average of 100 hours of video uploaded to it each day. Those videos are instantly accessible to millions of computers and mobile devices. Video has been a great investment for Google, with advertising on YouTube consistently performing as a driver of revenue for the company. More videos = more revenue potential.
In recent months, other companies have stepped up their attempts to capture some of that video and mobile market share. Despite their billion dollar purchase of Instagram, the Facebook empire lacks a strong video and mobile component. This leaves them vulnerable to losing market share and ad dollars not only to Google, but to Twitter as well . The over 500 million Twitter users now have to click a link that directs them to a separate page to see an Instagram image or video that was shared on twitter. In a world of instant gratification, this extra step has become an undesirable headache for many users.
When Twitter cut off the instant views of Instagram content in their feed, it opened the door for other apps to grow on the platform. It was not too long ago that the Vine video app was released to the public and in the last 6 months it has blown up in the mobile social sphere. With simple, six second video clips, the ease and connectivity of Vine helped them surpass other video apps such as Keek and Cinemagram.
Instagram’s videos allow users to film 15 seconds of footage, with some light editing tools available to them. The increase in available time aligns nicely with some standard video ad runtimes, perhaps hinting at future plans and opportunities for brands. From a growth perspective, while some users may choose to use the Instagram video app over Vine, it is still unclear how Instagram videos will be monetized by Facebook, which at the end of the day, is what investors watching the company are interested in.
As for the users, whose behavior will drive long-term profitability, there are 751 million Facebook users who use the platform from their mobile device, far surpassing the mobile savvy 130 million Instagram users. The video options for Facebook users as a whole are not as sexy or easy to use as the ones available now on Instagram. Even if they “beat Vine,” Facebook has not solved the video question for the majority of their users, negatively impacting their access to a medium growing in value and in turn, the company’s pecuniary value.
Meet Emily Sulman, our newest Make Me Social marketing coordinator. She is is a witty girl from Los Angeles and a graduate of the University of San Diego. Emily has a passion for pop culture, technology and writing and hopes to pursue a career as a record producer in the future.