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

A man by the name of Kevin System learned to code at night and built a prototype app. He shares 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 achieve success or not. Meaning if they make a profit or not.

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 infographic

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 its ecosystem.

Adds a 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 be most likely to work, sparing all of us from ads that feel out of place and seems stupid.

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

That 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 idea.

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 excited about the future.