Why Facebook will benefit from Instagram’s popularity among teens

By

Nov. 20 2020, Updated 4:17 p.m. ET

Instagram is the most popular social network among teens

In the previous part of this series, we discussed how Facebook (FB) and Google (GOOG)(GOOGL) are the most preferred social networks for the purpose of social login. But Instagram has emerged as the most popular social network among teens in the U.S.

According to a survey on 7,500 U.S. teenagers conducted by Piper Jaffray this year, Instagram, Twitter (TWTR), and Facebook were the three most popular social networks among teenagers. Tumblr, Google+, and Pinterest were less popular social networks.

Ad social networking sites used by teens

Teenagers are becoming an important demographic group for social networks

Instagram is a photo sharing app that Facebook acquired two years back for $1 billion. During these two years, Facebook managed to grow Instagram’s monthly active users from 22 million to 200 million. But Facebook has said that it’s still in the early days of developing and monetizing this product.

As we discussed above, Instagram has become the most popular social network among teens. This should help Facebook target teens with ads related to youth-centric premium brands.

You could consider the Social Media Index ETF (SOCL) as an ETF for investment. It has high exposure to social networks, including Facebook.

Article continues below advertisement

Incidentally, teenagers spend the highest proportion of their income online compared to other age groups. According to a report from BI Intelligence citing Forrester and the U.S. Census, Generation Z (people between age 18 and 24) in the U.S. spent about 8.75% of their income online in 2013. This was much higher than the proportion of online spending by any other age group. This trend shows that targeting the young generation with attractive marketing programs is important for social networks.

Advertisement

More From Market Realist