Everybody wants to know what Facebook (NASDAQ:FB)’s plans are for increasing revenue without changing the user experience. While the company is faced with a lot of obstacles, there are several strategies the social networking giant may be able to employ in the future to push its revenue to new heights.
The strategy that Facebook will use to increase revenue is up in the air at this point. There are a lot of opinions circulating on what the company should do next, however, it needs to be very careful with each and every move.
A growing number of people are beginning to believe that Instagram videos could be the best way for Facebook Inc (NASDAQ:FB) to add another revenue stream. This is something we are going to hear more about in the months to come, so there is no better time than now for taking a closer look at the argument in favor of this money making strategy.
In a recent Bloomberg Television’s “Bloomberg West” segment, Emily Chang spoke with Wedbush Securities’ Michael Pachter to discuss the possibility of Facebook Inc. (NASDAQ:FB) using Instagram video to make money.
Here is some of what Pachter had to say:
“I think it will be very short form video. I think that what a lot of people are missing is that video allows for interstitial advertising, so you can insert an ad right before the video or right after the video. And I think that people also aren’t really thinking about the Instagram audience which skews a lot younger and a lot more female than the conventional Facebook audience. These are people who are exhibitionists. They can’t wait to showoff pictures of themselves. I think they will lap up video like there is no tomorrow, and I think this will be far more successful than Vine was on Twitter because Twitter tends to be an older audience. Not old old, but older twenties as opposed to older early teens.”
This is an interesting take on Facebook Inc (NASDAQ:FB) and how the company can increase revenue through Instagram. Whether or not this is something the social networking company is thinking about is up in the air at this point, but all signs are pointing in this direction.
If you want to view the entire segment, including more information from Pachter on a potential Facebook Inc (NASDAQ:FB) announcement, you can do so by watching the video on the following page: