Yes, Facebook and Instagram are related. Instagram was acquired by Facebook in 2012 for approximately $1 billion in cash and stock. Since then, Instagram has remained a separate app but is owned by Facebook.
The History of Instagram and Facebook
Instagram was founded in 2010 by Kevin Systrom and Mike Krieger originally as a photo-sharing app and social network. The app gained popularity very quickly, reaching 1 million users in just 2 months. By April 2012, right before being acquired by Facebook, Instagram had 30 million users and was growing exponentially.
Facebook, founded in 2004 by Mark Zuckerberg, had also grown rapidly to over 1 billion users by 2012. With this huge user base, Facebook was looking to expand into photo-sharing and saw Instagram as the perfect acquisition target.
In April 2012, Mark Zuckerberg announced that Facebook had reached a deal to acquire Instagram for $1 billion. The deal was made up of $300 million in cash and 23 million shares of Facebook stock. Kevin Systrom agreed to the acquisition as long as Instagram could remain independently managed.
Instagram After the Facebook Acquisition
After being acquired by Facebook, Instagram continued operating as a separate app. The founders remained in charge of product development and retained the startup culture. However, the resources from Facebook helped accelerate Instagram’s growth.
Some key developments after the Facebook acquisition:
- In 2013, video was introduced on Instagram
- Instagram launched advertising capabilities for businesses in late 2013
- Instagram Stories launched in 2016
- Shopping and other ecommerce features were added to Instagram
- Facebook integration was added, allowing cross-posting between platforms
- IGTV was launched in 2018 for longer-form vertical videos
- Numerous new filters, editing tools, stickers, and AR effects were added
By acquiring Instagram, Facebook was able to continue growing its social media empire. Instagram benefited from Facebook’s resources while still retaining its own identity. It was a win-win for both companies.
User Base Growth Since the Acquisition
Under Facebook’s ownership, Instagram has seen astronomical growth in its user base:
| Year | Number of Active Users |
|---|---|
| 2012 (at acquisition) | 30 million |
| 2013 | 90 million |
| 2014 | 150 million |
| 2015 | 300 million |
| 2016 | 500 million |
| 2017 | 800 million |
| 2018 | 1 billion |
| 2019 | 1.2 billion |
| 2022 | 1.9 billion |
From just 30 million users at the time of acquisition, Instagram has grown to around 2 billion monthly active users today. The exponential growth is largely attributed to Instagram’s integration with Facebook’s infrastructure and resources.
Facebook’s Acquisition Impact on Instagram
Facebook’s acquisition has impacted Instagram in the following key ways:
- More resources: Instagram gained access to Facebook’s financial resources, technical expertise, and talent pool.
- Accelerated growth: Cross-promotion with Facebook’s massive user base turbo-charged Instagram’s user growth.
- Ad capabilities: Instagram was able to leverage all the advertising technology Facebook had developed.
- Monetization: The acquisition allowed Instagram to focus more on monetization through ads and shopping.
- Algorithm changes: Instagram’s feed shifted to be more algorithmic like Facebook’s news feed.
- Leadership: Kevin Systrom and Mike Krieger both eventually left Facebook/Instagram in 2018.
There were concerns that Facebook would dramatically change the Instagram app experience. But most users agree the core Instagram experience remained intact post-acquisition. Overall, the resources from Facebook accelerated Instagram’s product development and user growth.
Remaining Separate Brands
Despite the common ownership, Facebook and Instagram have remained separate brands serving different purposes:
- Facebook: Social networking centered around friends and family. More text and link sharing.
- Instagram: Visual discovery and sharing. More photos and videos.
Facebook aims to connect friends and family. Instagram is about expressing yourself visually and discovering content based on your interests. The apps appeal to different user motivations.
That’s why Facebook has strategically kept the brands separate. They don’t want to blend the usage cases together too much. Each brand has its own distinct identity and loyal user base.
Shared Infrastructure and Data
Behind the scenes, Facebook and Instagram increasingly share infrastructure, data, and technology:
- They run on the same back-end systems and data centers.
- Accounts can be linked for cross-posting.
- Ad targeting and measurement is integrated.
- Algorithms are optimized using shared data.
- Technical teams collaborate on AI, VR, security, spam, etc.
This back-end integration enables a more seamless experience between the apps. For example, finding friends to follow on Instagram is easier thanks to Facebook’s social graph. Ads are also more relevant to user interests.
At the same time, Facebook is careful not to share too much user data between the apps. There are privacy boundaries maintained to keep the brands separate.
Executive Leadership
Instagram and Facebook have separate executives running each app:
- Instagram: Led by Adam Mosseri as Head of Instagram
- Facebook: Led by Mark Zuckerberg as Facebook CEO
Adam Mosseri reports directly to Mark Zuckerberg. But each executive team is primarily focused on its own app and audience. There is coordination between the teams, but also autonomy to chart each app’s future.
So while Facebook provides direction and oversight, the Instagram brand is firmly in the hands of Adam Mosseri and his deputies.
Shared Advertising and Payments Infrastructure
Facebook and Instagram also share key monetization infrastructure:
- The Facebook ad platform powers ads on both apps.
- Facebook owns the Facebook Pixel and Aggregated Events Measurement used for optimization.
- Businesses manage ads for both apps in Facebook Business Manager.
- Facebook Pay supports payments on Instagram for shopping and donations.
This shared infrastructure allows businesses to analyze ad performance and optimize campaigns across apps. Instagram piggybacks the massive reach of Facebook’s advertising platform.
The integration makes buying and managing Instagram ads seamless. But marketers can still target each app’s audience separately based on interests and behaviors.
Future Integration Plans
Facebook has plans to further integrate messaging, payments, and ecommerce across their apps. The vision is to create more continuity between Facebook, Instagram, Messenger, and WhatsApp.
Here are some future integrations proposed:
- Unified messaging across apps.
- Ability to shop directly on Instagram and Facebook.
- Instagram checkout using Facebook Pay.
- Cross-app notifications and sharing.
More integration could create a deeper ecosystem effect and lock users into the Facebook apps universe. But too much blending risks losing the unique value of each app.
As a result, Facebook is taking a measured approach by introducing more connections while still allowing each app to stand on its own.
Are Facebook and Instagram Competitors?
Facebook and Instagram occupy two different positions in the social media landscape:
- Facebook: The world’s largest social networking platform for sharing updates with friends and family.
- Instagram: A top visual discovery network focused on photos, videos, and influencer content.
While there is some overlap in functionality, each app has carved out a distinct category and purpose:
| Primary Focus | Connecting with friends/family | Discovering visual content |
| Content Format | Text, links, some photos/video | Photos and videos |
| User Demographics | All ages, skews older | Mostly younger users |
| Key Features | News feed, groups, events, marketplace | Photo filters, Stories, Reels, IGTV |
Originally, some saw Facebook and Instagram as competitors in photo sharing. But Facebook smartly acquired Instagram which allowed the apps to differentiate while still supporting each other.
Instagram is now the undisputed leader in its niche of mobile photo sharing. And Facebook dominates social networking and connections. The apps complement more than compete at this point.
Differing Audience and Use Cases
Facebook and Instagram also serve different needs for their audiences:
- Facebook: People of all ages use Facebook to stay connected with family and friends by sharing life updates, photos, videos, and more. There is a news feed of updates from connections.
- Instagram: Mostly used by a younger demographic who come to Instagram to express themselves through photos and videos. Content is discovered based on hashtags and interests vs social connections.
While there is overlap, the apps are tailored for these core use cases. Users perceive Facebook as more personal and Instagram as more performative. This further segments the audiences.
Businesses also use each platform differently: Facebook for sales and promotions, Instagram for branding and inspiration. The usage patterns remain distinct.
Conclusion
In summary, Facebook and Instagram are closely integrated in terms of ownership, infrastructure, and technology. However, they continue operating as separate apps and brands.
The acquisition provided benefits to both parties. Instagram gained investment and resources to grow. Facebook acquired a rising social media powerhouse in photo and video sharing.
But each app retains its own identity and audience. Facebook connects friends and family while Instagram drives visual inspiration and discovery. They complement more than compete in the social media landscape.
Looking ahead, increasing integration and shared resources will likely strengthen the strategic positioning of both Facebook and Instagram. However, it’s unlikely they will be consolidated into a single app. Maintaining two separate flagship apps gives Facebook the strongest combined reach across all consumer demographics and use cases.