Technology
The Influence of Instagram
The digital advertising landscape has changed dramatically over the past decade.
Social media platforms are now some of the most heavily trafficked places on the internet, and sharing hubs such as Instagram are increasingly becoming a cultural touchpoint for millions of people around the world.
Tapping into Instagram Influence
Instagram is closing in on a billion monthly active users, and with such a massive audience, social influencers (i.e. people with large, engaged audiences) are raking in the dough from paid brand endorsements.
Today’s infographic, from XCart, walks us through the multi-billion dollar phenomenon known as influencer marketing.
Chasing Attention Spans
It’s estimated that 65% of adults in the U.S. use social networks – a figure that spikes to an astonishing 90% for young adults.
Social media has become a fixture in our everyday lives and where attention spans wander, advertising is sure to follow. And follow it has. Marketers dumped over $23.68 billion into ads on social platforms in 2016, and that momentum shows no sign of slowing down.
However, one growing and increasingly potent form of marketing that isn’t entirely tracked in that total stems from influencers.
The Kings and Queens of Instagram
Instagram (acquired by Facebook in 2012) has seen impressive growth in recent years coinciding with a shift towards more visual content sharing. A combination of good timing and plagiarism has helped the photo sharing network grow by over 350% since 2014.
Instagram has also become a major platform for influencers.
While endorsements have traditionally come from celebrities such as actors or athletes, today’s influencers have built their audiences though sharing compelling content via social media channels. This is a huge shift as influencers come with all kinds of quantifiable audience sizes and demographic make-ups. It makes for targeting and relatability rolled into one package – particularly in the case of microinfluencers.
The Value of Influence
Power users who create a lot of content and amass thousands – even millions – of fans on a platform find themselves in a unique position. Their influence is worth something more tangible than likes; it’s worth some serious coin.
On the flip side of the equation, fans generally understand that influencers use sponsored posts as their compensation for creating content. A contemporary analogy would be occasional commercial breaks in exchange for a “free” TV program. The audience knows there’s no free ride, but if the network goes overboard, or the advertisers don’t align with the show properly, the reciprocity breaks down.
Similarly, influencers know that endorsements use up “credit” they’ve built up with their audience, so the successful ones choose their brand relationships wisely and don’t go overboard on sponsored posts.
Brands are Betting on Microinfluence
Over 70% of brands indicate they’re using influencer marketing, and brands will be spending an estimated $2.3 billion on it by 2019. While celebrities like Selena Gomez will earn a sizable chunk of that, people with much smaller audiences are each getting their slice of the pie too.
Not only is it easier to target local or niche audiences by working with microinfluencers, but these audiences also have much higher levels of engagement in the form of comments and likes on posts.
According to XCart, influencers with under 25,000 followers are a very affordable investment at ~$130 per post. This means that advertisers can collaborate with hundreds of influencers around the country for the same price as working with a celebrity.
Of course, there’s more vetting and logistics required in working with a larger group of influencers, but the payoff could be enormous for the right type of campaign.
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Technology
The World’s Biggest Cloud Computing Service Providers
Cloud computing service providers generated $270 billion in revenues last year, concentrated among a few giants.
The World’s Biggest Cloud Computing Service Providers
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Today, the three largest cloud computing service providers command 66% of the global market.
Amazon, Microsoft, and Google have generated billions in revenues through their cloud infrastructure that provide the computing power companies need to store data. What’s more, most AI models are run on the cloud, creating a surge in computing demand for cloud providers.
The above graphic shows the largest cloud providers globally, based on data from Synergy Research Group.
Breaking Down the Cloud Market
Here are the world’s top cloud computing service providers based on enterprise revenues as of the fourth quarter of 2023:
Provider | Country | Market Share Q4 2023 |
---|---|---|
Amazon Web Services | 🇺🇸 U.S. | 31% |
Microsoft Azure | 🇺🇸 U.S. | 24% |
Google Cloud | 🇺🇸 U.S. | 11% |
Alibaba Cloud | 🇨🇳 China | 4% |
Salesforce | 🇺🇸 U.S. | 3% |
IBM Cloud | 🇺🇸 U.S. | 2% |
Oracle | 🇺🇸 U.S. | 2% |
Tencent Cloud | 🇨🇳 China | 2% |
Other | 🌐 Other | 21% |
With 31% of the global market share, Amazon’s cloud division posted $24.2 billion in revenues over the quarter.
AWS is a major cash engine for the company, but growth slowed over 2023 as enterprises and startups cut back on tech spending. Annual sales growth compared to the same quarter last year grew by 13%—far below competitors Microsoft and Google, whose cloud divisions grew by 30% and 26%, respectively.
As we can see, U.S. firms make up the lion’s share of the market, while China’s Alibaba Cloud and Tencent Cloud together comprise 5% of the global share.
The AI Boom and the Cloud
Given that a significant chunk of AI models are run on the cloud, the industry may be positioned to see greater demand as momentum accelerates.
In fact, newer AI systems are as much as 10 to 100 times larger than older models. In line with this, major cloud providers are seeing high demand for cloud services to allow companies across financial to manufacturing sectors to run large language models on their platforms.
Today, 98% of companies globally rely on the cloud for at least one part of their business applications, which may present a market opportunity for the industry as advancements in AI continue to grow.
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