The decline of Facebook shares 19 percent rated put pressure to Instagram

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The decline in shares of Facebook of 19 percent at the close of trade Thursday (26), rated put pressure on Instagram to get more advertisers who have long been its success on Facebook. Investors rely on revenue from Instagram to cope with slowing core service using Facebook.

Instagram and Facebook are two popular social media. According to four buyers of advertising, the number of ads they are not much different, but the difference in price is far enough.

The price of advertising on Instagram half of Facebook due to the limited number of advertisers competing to get a place on Instagram.

Investors called to rely on revenues from declining to address the use of Instagram Facebook applications. However, gaps to be filled in the wider than the Instagram estimate.

Facebook's market share was down 19 percent at the close of trading Thursday, resulted in the company losing the US $120 billion.

This decline occurred after a disappointing quarterly earnings II, and because the company warned of a sharp slowdown in sales growth in the coming quarter-quarter, together with increased expenditures for increased security and privacy, according to a report from The New York Times.

Regardless of the expectations of the investors against Instagram, they could not rely on the service completely.

According to the founder of the Agency purchase advertising Media, Hawke Erik Huberman, Instagram users not accustomed to clicking links in the upload, so it is less effective at generating online purchases than Facebook.

He assesses data about ad serving Instagram still less than Facebook.  "There is a fundamental problem with that platform, which means all types of modern marketers will be hesitant to increase spending on Instagram, " said Huberman.


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