uploads///Instagram Revenue Estimates

No More Picture Cropping to Post on Instagram

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Instagram introduces portrait and landscape orientation

Instagram, Facebook’s (FB) photo-sharing app (application), now lets users share and upload pictures in a rectangular format, in either portrait or landscape orientation. Before, users had to crop pictures in order to post them in the traditional square format.

This is a step forward for Instagram, since the majority of Instagram users download third-party apps such as InstaFit to post pictures on Instagram without cropping them.

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The new feature is also available for posting videos. This will help Instagram compete with other social networks for mobile advertising. The move comes at a time when more and more consumers are purchasing smartphones with large screens. Users now want a better viewing experience on their mobiles, and widescreen videos are certainly popular.

A recent report from Bank of America Merrill Lynch predicts that Instagram will earn $300 million in revenues for Facebook in 2016. You can see this increase in the above graph.

Facebook’s acquisition of WhatsApp and Instagram eases tension

Teenagers are moving from Facebook’s core site to other sites like WhatsApp and Instagram. But now that Facebook has acquired both WhatsApp and Instagram, Facebook will be able to sustain its ever-growing user base.

Facebook can also look for other organic ways to retain this demographic segment, as it provides a very important market for advertisers.

Similarly, Twitter (TWTR) acquired Vine and Yahoo (YHOO) acquired Tumblr to ensure that they don’t lose their teenage demographic as their core sites mature. Google+ (GOOG)(GOOGL) has seen minimal uptake compared to its rivals.

For portfolio exposure to Facebook, you could consider investing in the PowerShares QQQ Trust, Series 1 ETF (QQQ). Facebook accounts for 3.60% of QQQ.

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