How Instagram became a multi-billion dollar platform.

Influencers and companies now bank off of the social media platform creating content that is profitable.
By: Matthew Buddhasiri

When Instagram co-founder Kevin Systrom first thought of the concept for Instagram in 2010 (then called “Burbn” after his affinity for Kentucky Whiskeys) never did he imagine it would become the powerful marketing and promotional tool it has become today. Initially, Instagram was designed as an iPhone app in which the users can edit and post photos to their profiles for their “followers” to see and admire.

Today major companies such as Starbuck, Sephora, and Disney all are using this platform to help promote and sell their products. This new era of self-promotion has also caused the phenomenon of the “influencer,” which is a person with a large following who has great influence over the public and can help to better sell and promote the products due to their knowledge and credibility on the specific topic. 

Celebrities such as Kim Kardashian and her sister Kylie Jenner have both created multi-billion dollar beauty empires with the use of their Instagram accounts, using that very concept of self-promotion and turning it into a lucrative business. At any time during the day, if you click on the Instagram stories of Kim or Kylie, you will find at least one of the PR savvy sisters pitching a new beauty product they have coming out to their millions of followers, which in turn creates free publicity and exposure for their products that sell out in minutes. 

Beauty powerhouse Sephora is also in on the game. They continue to do successful collaborations and numerous campaigns with up-and-coming beauty influencers to promote the sale of their beauty products and makeup. The company creates various sweepstakes and give-away incentives that create engagement with their followers who are quick to purchase an item just to be a part of the contests. With over 18 million followers on Instagram and countless incentive programs, it’s easy to see why the brand is at the top of their game. 

With a phone in everyone’s hands these days, everyone has the chance to use Instagram as their platform to promote and sell. Who knows...maybe one of you reading this right now will be the world’s next self-made billionaire.