Facebook transfers a key executive to Instagram
Longtime Facebook (FB) executive Justin Osofsky is joining Instagram as its COO, a position that Bloomberg reports has been vacant for nearly nine months. In this position, Osofsky will complement Instagram head Adam Mosseri, serving as his second-in-command.
Osofsky has spent more than a decade at Facebook and is seen as one of the company’s sharpest talents. He’s been involved in key operations such as content review and media partnerships at Facebook, and he’ll bring with him the practical skills and experience that will be useful in building Instagram into a better business.
Instagram is the engine behind Facebook’s revenue growth
Instagram is one of Facebook’s main advertising businesses and is expected to play a key role in driving revenue growth at the company in the coming years. Facebook’s advertising revenue increased 26% year-over-year in the first quarter, and Instagram contributed 53% of that growth, according to a KeyBanc Capital Markets estimate cited by Vox. Instagram is expected to contribute 68% of Facebook’s advertising growth by the fourth quarter of 2020.
Facebook has said it has some 2.0 million active advertisers on Instagram and that the number of advertisers across Facebook’s platforms came in at over 7.0 million in the first quarter. Baidu (BIDU) and Yelp (YELP) finished the first quarter with ~530,000 and 192,000 advertisers, respectively.
Instagram is Facebook’s direct competitor to Snap’s (SNAP) Snapchat. Instagram has more than 1.0 billion monthly users and over 500 million daily users compared to Snapchat’s 190 million daily users and Twitter’s 134 million daily users.