Instagram and Information Cascades
The popularity of Instagram can be analyzed using the idea of an information cascade with direct-benefit effects. As more people began using Instagram an information cascade started where later people saw early adopters of the app enjoying the platform and subsequently decided to make their own accounts. People could have inferred that Instagram was a useful and entertaining platform as the user base grew which means that people started to imitate existing users’ behaviors by making these inferences about Instagram. Another factor that could have contributed to Instagram’s popularity is people feeling social pressure from their friends using Instagram and wanting to be a part of the platform. Similar to the fax machine example in the textbook, there are direct-benefit effects to people as Instagram gains more users; if no one was using this platform to post pictures then the value of Instagram would be greatly decreased. This means that other people’s decisions to use Instagram or to not use Instagram directly impact the value of this app to other people.
This article provides insights into Instagram’s user base and how popular this platform has become over the past eight years. Instagram currently has around 500 million daily active users with the majority of these people being younger than 35 years old. There have also been billions of photos posted since the founding of Instagram in 2010. These statistics show just how powerful Instagram has become and how many people now use this platform to share pictures and videos. As more and more people become active users, the direct-benefits of using Instagram increase and in turn the app becomes more popular. This is a prime example of how information cascades and direct-benefit effects are a huge part of social media and the popularity of certain platforms over others. https://www.brandwatch.com/blog/instagram-stats/