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Instagram CEO outlines revenue strategyKevin Systrom, CEO of Instagram, discusses how his photo-sharing startup plans to make money. He was interviewed by PandoDaily's Sarah Lacy at Business Insider's Ignition West.
You are so sick of being asked how you guys are gonna make money. This is... this is what I wanna know. Well, let me ask you first? Do you know how you're gonna make money? We don't... Let's pretend it's happening. I'm sorry. That is the title of the talk right? It's in parenthesis. We can forget about it. I don't read things in parenthesis. So here's the deal. Instagram has three things that we need to get right. The first is building an audience, okay? So we have 27 million people. You know, 27 million people is not too shabby but it's nowhere near the scale you need to make a massively large business. So we're working on it. We have a million users a week. It's fantastic. Things are going really well. The second is that we wanna create a stage and when I say we wanna create a stage, what we wanna do is build a platform where advertisers can come and you know perform their advertisements. So if you look at our medium, we're all about images and images are really important to us because they are the same language that advertisers tend to speak and display advertising. What we've seen is people like Burberry, Banana Republic, Audi, you name it. They're all signing up and they're using Instagram as a really clever way to showcase their product and I think that through that, we can do some really cool stuff. Now, the third part of this is actually tools which we haven't gotten to. What are the tools that allow advertisers to use our platform differently than say, a user. Right now, if an advertiser wants to put something on like if Burberry wants to post a photo, they either need to take it with a single iPhone or send it to themselves via e-mail and then crop it out of their library. It's like such a terrible experience that it's almost amazing that people are doing it. It's amazing that we see the amount of attraction with brands that we do. So those are the three components and I think the third is really where the modernization starts getting interesting and I'm not gonna say that we're gonna know day 1 exactly how it takes form but I think it's about experimentation and not ignoring it, say for like the first 5 years of the company. I wanna make sure that it's always top of the mind because we're here to buld a business.