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Why is Facebook Heavily Investing in Instagram?

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Facebook is known to everyone as the giant company as far as social networking is concerned. This social network boasts a massive 1.5 billion users from all over the world.

On top of this, the company is now the proud owner of WhatsApp, which is the leading provider of instant messaging services in the world with a user base of more than 800 million users. Furthermore, Facebook owns Instagram, a photo-sharing application. The company also came up with an in-house messaging app known as Facebook Messenger, which has already amassed a user base of more than 700 million people.

According to a report by Market Realist, Facebook grew its list expenses by 82% in the second quarter of 2015. The site revealed that this growth came by because of the company investing in a number of initiatives as well as future projects. But where is the company’s investment efforts directed?

Facebook is hiring more engineers than ever before

There is reason to believe that Facebook is working to improve its investments in key areas of its services. This can be backed by the fact that the company is aggressively hiring engineers, something that has led to an increased number of employees in this company.

A recent report revealed that Facebook had 10, 082 employees as of March 2015, a figure that represented an increment of 48% when compared to March 2014. Other than the new talent that Facebook has been adding to their ranks, a lot of investment has also been happening as the company seeks to improve the user experience of their products, including and not limited to Instagram, WhatsApp and Facebook Messenger.Instagram is expected to yield a massive $300 million in revenues in 2016 and as a result, Facebook seems to be heavily focused on this photo-sharing app.

Facebook is focusing on mobile ad business

Another area that Facebook is directing its investment efforts is in the advertising technology, something that has a huge impact on the business of the company. Facebook has recently invested in Atlas and other advertising tools and programs such as Custom Audiences and Audience Network, all of which are initiatives intended to improve the company’s ad business.

The level of investments that Facebook is showing when it comes to ad tools and programs are alarming. In fact, this shows how this company is heavily interested in mobile ad market. Many have realized that ad dollars are no longer on PCs and instead, they are in the mobile sector. Twitter rolled out a developer platform known as Fabric in a bid to help create as well as monetize apps. This Twitter-based developer has an edge over Audience Network as it not only helps developers with management of ad inventories, but it also helps them to debug and test new applications.

Google and Yahoo! have also taken the same lane with AdMob and Flurry respectively, an indicator that competition is already taking shape as far as mobile advertising is concerned.