Why Facebook's Purchase of Instagram
Won't Be Its Last
With news this past week that
Facebook's growth – it now boasts 900 million users worldwide – has
begun to slow, the social network likely will continue to explore new
ways to more efficiently monetize the existing user base.
Nearly one-seventh of the world's population is now registered on
Facebook, and a significant percentage of those users reside in
developed countries that have a robust online advertising market. By
focusing on users in these markets, Facebook will need to create higher
engagement across multiple channels (mobile and desktop), increase ad
inventory via more page views, and garner higher CPM rates via ad
optimization and rich media ads.