Facebook’s FB Instagram recently collaborated with dating app, Tinder that was started in 2013. Tinder is a popular match-making app that uses the Facebook profile picture and some other information to connect its users. This apart, the app pulls information like geographical location, mutual friends and interests about a user from their Facebook profile to find a match.
Tinder recently updated its app, which will allow its users to link their profiles with their respective Instagram profiles. This initiative will allow users to check the Instagram profiles of their potential matches directly from the Tinder app, giving them access to the last 34 pictures on that particular Instagram profile.
Moreover, users can also view the common friends. This move hardly comes as a surprise. Given Instagram’s popularity, most Tinder users had already included their Instagram handles in their profile.
The new Tinder update will also pull more information from Facebook profiles. Users will be able to see the whole list of interests of their potential matches instead of just the common ones visible earlier.
Instagram was acquired by Facebook in 2012 for $1 billion and since then has gained immense popularity. In fact, in Dec 2014, it surpassed Twitter’s TWTR user base with more than 300 million active users.
Facebook had introduced advertising on the photo-sharing platform in late 2013 and has been consistently witnessing higher engagement levels. Facebook had stated that on an average, users in the U.S. spend as much as 20% of their mobile time on Facebook and Instagram. The aforementioned collaboration is likely to further improve Instagram’s user base thereby attracting more ad dollars to the platform. Also, it would add to Facebook’s efforts for building a healthy ecosystem.
We believe that such initiatives when coupled with the strong growth potential of Instagram can be strong growth drivers for this Zacks Rank #3 (Hold) company when it decides to monetize.
Facebook garners most of its revenues from advertisements and faces significant competition from Twitter, Microsoft Corp. MSFT and market leader, Google GOOG.
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