Building a $100 Billion Dollar App

One of the World's most popular apps in app and play stores today, Instagram attracts 2 Billion monthly active users and a stunning $200 Million in Daily Ad Revenue! This is largely thanks to adaptive user features, addictive algorithms and business opportunities from the Meta network that have been developing for the past 14 years.

Instagram officially launched on 6th October 2010 after a revamping of initial web app called Burbn which ultimately failed and lost circa $500,000 of Seed VC funds injected by Baseline Ventures and Andreesen Horowitz. In the first day, it managed to onboard 25,000 users leading to appearance on the explore pages of the app stores and further propelling it's growth.

Why did Burbn change to Instagram?

Kevin Systrom and Mike Krieger wanted to start an app for Whiskey lovers to check locations and plan future meet-ups, earn point and post photos of meets. It was quite complicated and location based, when rolled out as a mobile app. The pair raised Seed funding but the app failed to catch traction and was an ultimate failure. However, Systrom noted that users were not using the check-in features at all but they were using one thing in a difficult and cluttered app - photo sharing.

The pair took the decision to scrap the Burbn features and focus on the one element that users were actually interested in and developed an app around photos. This new app they called Instagram.

The Importance of Analytics

This can't be stressed enough, an app is no good if users aren't using it. Don't build an app for users to learn to operate, instead, learn how users operate and build an app for that. It's much easier to adapt an app than to adapt users.

Thanks to one key decision at a difficult time, the cofounders managed to get something to work and catch on.

Don't give Up!

The early days of Instagram show why it's important not to give up and that success can be just around the corner. It's very easy to drop it since half a million was spent, almost a year had passed and the project had failed. Could you relate?

Smash the Launch

A key lesson from the Instagram story is how it managed to onboard 25,000 users in the first day. (For those that have launched apps know that this number is very impressive)

Instagram managed to do that by partnering with professional photographers to upload quality content to the platform so that when users signed up, there was already content there to consume. Additionally, they wrote to outlets like Mashable to be featured on the day of launch so when people see it, they check on app stores and find the app. This is a great lesson since early interest in a new app greatly raises app store algorithm rating and optimises listing creating a snowball effect.

Simplify

The key reason for the failure or Burbn (and success of Instagram) was that Burbn was difficult and cluttered with useless features. This is a common mistake that we see founders making, they want all the cool features to be in their app to really 'Wow' users.

Understand this, your users have no idea what you're thinking, they are not in your head so will not understand. Nowadays, people have a very short attention span and if they don't instantly understand an app, they will not use it, full stop.

It's great to have a lot of cool features, like Instagram today, but add these features slowly and over time. Let users feel comfortable with the base features, then add new ones while carefully monitoring how users react to them. New features can also kill engagement.

Summary

• Be Simple, Be Effective

• Build around Users behaviour

• Persevere, it's never over until you stop