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How do Instagram and Snapchat make their money you might ask yourself. Before we address that let’s take a quick look on how they started.

A dude by the name of Kevin System learned code at night and built a prototype app. He share it with a friend by the name of Mike Krueger and bumped into some investors and somehow convinced them to “fund” their idea.

Pretty much betting on a start up company if they can success or not. Meaning if they make a profit or nah.

Did some more refining of the idea and a name changed to what we all know by now as Instagram and in a few hours after launch, it became the #1 photo app. Over time it kept growing until it became a fixture in social media space. Now with millions of active users you open the doors for businesses to come in and pay you to promote their products on your app.

An infographic on how Instagram started.

Shout out to Anna Vital for creating this awesome infograpgh

Instagram made $700 million in 2015. All by through ads paid for by advertisers.

But the way they incorporate the ads makes it feel like it blends right in with the existing app and it’s ecosystem.

Adds an human touch to ads and it feels less invasive and way more personal and natural. They even go a step forward and place ads where it would most likely to work, sparing all of us from ads that feels out of place and seems stupid.

Yea Kinobody ads on Youtube I’m talking to you! But I’ll digress.

This is what Instagram and Snapchat do. They sell ads space. Yea ain’t shit changed. It’s not that much different from Mad Men but instead of selling ads on print or TV it moved to Instagram and Snapchat. Same concept just different ways to apply that concept.

Snapchat Reportedly Targets At Least $300 Million In 2016 Revenue. Same with Instagram all from selling ads.

Back when chocolate was only 10 cent 🙁

Human attention has shifted from TV and radio and now set on our phones. It’s an extension of ourselves. Sooner or later VR would be more easily accessible and people start creating incredible things with it. It would change the landscape of media once again.

Not sure about you but I’m really excited about the future.

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