2. The Formula of Success 2012?
• In the last years researchers at Thinktank International
have conducted numerous qualitative projects around
the world, looking at consumer trends, innovation and
mobile phones
• We have witnessed the growth of the Instagram users –
from a small community of visual innovators to
mainstream iPhone users all over the world
• This presentation is an attempt to look at the success
formula of this start-up
2
3. 1 Billion Dollars? Really?
• It is hard not to be at
least a little skeptical
about the wisdom of
Mark Zuckerberg’s
recent shopping spree
• 1 billion dollars for a 2
year old company that
does not make any
money and has 9 (nine!)
members of staff?!
3
4. 3 Lessons
• But ... let's for a moment stop wondering about the
wisdom of this peculiarly 21st century deal or the sinister
plans for world domination that might be behind it - and
let's look at lessons to be learned for other companies -
start ups or otherwise - who are hoping to make it big.
• Clearly Instagram have done something right to attract
the impressive user figures that attracted Facebook's
attention
• We think there's 3 key Instagram learnings that transfer
well to other tech companies
4
5. Lesson 1
Be Focussed!
• Instagram demonstrated
a level of focus not
always typical of Start
Ups
5
6. They concentrated their efforts solely on the
mobile platform
• They outsourced online
and offline experiences
to third parties (like
Statigram, Webstagram,
Printstagram etc.)
• And gave access only to
iPhone users.
• Arguably this level of focus meant that Instagram never
compromised on user experience. They demonstrated
Apple-like attention to detail and produced both beautiful
and simple technical solutions putting some of their Palo
6 Alto neighbours to shame.
7. What People Say
We decided that if we were going to
build a company, we wanted to Apple also selects its own
focus on being really good at one favourite applications, and
thing. We saw mobile photos as an one of our preferred apps,
awesome opportunity to try out Instagram, won the honor of
some new ideas being Apple’s ‘iPhone App of
the Year’
Kevid Systrom, TechCrunch
Instagram founder
I think the success and value
of #Instagram points to the
value of simplicity—both in
great #design and user
interface/experience.
@izzyplus
7
8. Lesson 2. #Occupy That Mobile Space!
• If Facebook were
created today, it would
be as a mobile service
• It is very clear that
mobile has been a recent
bet for Facebook
• Instagram will help them
to grab more land in this
still relatively
unchartered territory.
8
9. Lesson 2. Mobile Experience at its Best
• Instagram played to the
real strengths of the
medium and at the same
time pushed usage along
to create new mobile
experiences
• It made the most of
mobile as a multiple
platform, integrating both
camera and
communication use.
• They also understood the importance of
instantaneousness and spontaneity for mobile use
9
10. Lesson 2. Mobile Experience at its Best
• Instagram also
understood the appeal of
the visual and the
creative to trend-setting
Apple users
• The app connects people
in an instant and curates
their worlds in a
beautiful, simple and
easy-to-use way
• Due to its visual nature it broke language barriers
connecting users that don't share the same language -
arguably adding a new facet to Social Networks and
10 attracting outward looking users
11. What People Say
Not sure how I lived without it
before. I spend hours posting
pictures, commenting, liking
and communicating with
people all over the world…
mostly about cats :)
11
12. Lesson 3. Don’t Try to Target Everyone!
• It may have seemed like
a crazy move to limit
Instagram’s user base to
iPhone owners
• But this means that its
now 30 million strong
community consists of a
highly attractive
audience of design and
tech conscious
trendsetters with high
disposable incomes
• In other words, the sort of desirable in-crowd that attracts
12 advertisers.
13. Lesson 3. Don’t Try to Target Everyone!
• These trendy creatives
and photographers made
Instagram look cool and
hence attracted more
users
• A staggering 5 million
Android users in merely
6 days
13
14. So What Can 2012 Companies Learn From
Instagram?
To re-iterate the 3 golden
Instagram rules are:
• Focus
• Pick your audience well
• And Think Mobile (and
not just differently)
14
15. PS…
• PS. One thing that is still
not clear - what's really
worth $1 billion of
Facebook's cash?
• If you meet Mark, please
ask about his plans for
the service :)
15
16. A Few Words About Us
• Thinktank is an international qualitative research
consultancy based in London
• We pride ourselves on marketing thinking inspired by
real people
• For more see our website, blog or follow us on Twitter
www.thinktank.uk.com
www.thinktank-international.blogspot.com
http://twitter.com/#!/thinktank_int
:
16
17. THANK YOU!
Should you have any questions,
please do not hesitate to contact
Konstantin Pinaev konstantin@thinktnk.uk.com
Sabine Stork
sabine@thinktank.uk.com
