On a recent afternoon, a gymnast balanced his hands on the balcony railings on the third floor, overlooking the sidewalk.
A woman recorded this stunt on a smartphone, hoping to capture a video of this crazy style and then share it with millions of people. This is the work that 421 Media Company has been doing all day. 421 Media is a well-funded content company that produces popular content for Instagram consumers. Instagram is a social media platform that has more than one billion monthly active users in less than a decade of development.
Instagram is part of Facebook's social media empire, and its continued growth is critical to the parent company. However, this platform has grown so large, so fast, and so commercialized that it has the potential to lose the appeal of users who are known for their fashion and intimacy.
Instagram has evolved from a photo-sharing application supported by photography enthusiasts to a world of celebrity spokespersons and big V (there are many fans and influencers on the Internet), which has spawned a behind-the-scenes industry that will soon be able to post some content through advertising sponsored posts. Connect with fans.
Instagram has produced a number of popular content producers who are reshaping the way Instagram content is produced. But they still follow the basic formula of social media: people are willing to share more content, then the account will get more fans, you can make more money.
Like other companies in the Instagram content economy, 421 Media has taken advantage of a number of popular posts. To enrich their original content, staff search for interesting, cute, or sexy posts on Instagram and other social media sites, and they can then re-send them on Instagram-controlled Instagram accounts, such as @pups, @interest, and @ Tat.
In a typical working day, about 421 employees of 421 companies posted dozens of content posts from 100 Instagram accounts. These 100+ accounts have a total of 300 million fans, and the fans are larger than the sum of the big stars Beyonce and Kim Kardashian West on Instagram.
On these social media sites, advertisers will pay for "eyeballs." It is estimated that social media V advertising spending in the US and Canada in the first quarter of 2019 was $373 million. Of this, about $265 million was spent on Instagram, a year-on-year increase of 62%.
If done well, this big V marketing looks more real than the gorgeous media ads on TV or magazines. If not done well, it will be considered a flood of practices that undermine the appeal of social media platforms and drive away users.
Instagram co-founder Kevin Storm said at a meeting in March this year that he decided to leave the company last year. He said that strict supervision of advertising marketing posts on Instagram is "one of the toughest problems we have to face."
"I think we decided to adopt a wait-and-see attitude," he said. "What frustrates me is that because of this phenomenon, Instagram feels more and more unreal."
The health of the Instagram platform is a top priority for Facebook's business development. When Instagram was born in 2010, its new photo filter lets users choose a flattering effect. People have developed the habit of returning to the site again and again, usually just to see how many people like the pictures they collect.
Among young people, Instagram is seen as a fun place to rest on social media, without the Internet of words or political minefields on Facebook.
Facebook CEO Mark Zuckerberg was impressed with the rise of the app, which in 2012 directed a $1 billion acquisition to bring Instagram into the bag. At the time, the price was eye-catching, but the acquisition is now considered to be "a big bargain" for Zuckerberg.
According to Andy Hargreaves, a stock research analyst at KeyBanc Capital Markets, Instagram accounts for 22% of Facebook's total advertising revenue. He estimates that the app's revenue growth is faster than the parent company, accounting for 54% of Facebook's new online advertising revenue.
Youssef Squali, chief Internet analyst at investment bank SunTrust Robinson Humphrey, said that if Instagram did not sell to Facebook for independent development, it would receive a $200 billion valuation today. This will be a large part of Facebook's market value of about $536 billion. This also means that the platform will be more valuable than the video site Netflix, Citigroup or beer maker Budweiser InBev.
The popularity of this app allows Facebook to cross the gap between the aging parents of the Facebook platform and their teenage and twenties. It is obvious that young people and kids prefer Instagram. In turn, after Facebook took power, Instagram gained a boom.
Facebook's algorithm decides which photos to display to Instagram users, giving them more types of content they might like (probably based on viewing history). Instagram may be addictive to users, in part because the app knows what you like.
Instagram has rules to prevent the platform from becoming a free marketing tool. The platform prohibits users from buying and selling accounts. Advertising must be public and may not be reproduced without permission.
But Instagram is not strict with "rule enforcement." According to people who run a large number of Instagram accounts, Instagram has a tolerant attitude towards violations. In this relaxed environment, 421 companies and other content production companies have been able to grow rapidly and have made huge profits.
Former professional surfer Roni Eshel today is co-CEO of the 421 company. He said that the daily production of the 421-controlled Instagram account can be smoothly integrated into the Internet youth culture, from pet dogs to melted cheese, their content is all-encompassing. It is reported that Sony, Paramount and Amazon's movie studios are the company's advertisers.
421 employees interspersed with blockbuster movies, TV shows and fashion brand content, and these advertising-like content were not always labeled as advertisements. For example, a post that was not previously marked as an advertisement is "God! A new "Terminator" movie."
Recently, the company's advertising posts have added a "sponsor" label, indicating that this is an advertisement, in order to comply with the advertising transparency requirements of the Instagram platform.
When a Instagram account controlled by a 421 company praises a product or movie, a large number of accounts controlled by the company will actively entice and create marketing popularity. Obviously, this kind of artificial response does not match the original spirit of the Instagram platform.
The company said it has now made more cautious about its content and they acknowledge the mistakes. "Our goal is to advertise at the highest level," said Greg Cowen, former senior executive of 421's co-CEO and advertising agency Global McCann.
For social media companies, they have little incentive to ban "doing accounts" as long as they have a steady stream of revenue. They also don't know how long a social tool can last. Regardless of the authenticity of the content, the more users browse social media software, the more fees the platform charges advertisers.
Eric Kim, co-founder of Goodwater Capital, a venture capital firm focused on consumer Internet companies such as social media, said: "Social networks have a natural half-life" because of a generation Things you like are usually not suitable for the next generation.
Vishal Shah, the head of Instagram's product, said the platform is doing everything possible to balance the execution of rules and the freedom of users to determine quality. "Users are the ultimate judges of what makes sense," he said. "We pay close attention to the trends in the ecosystem, but we don't specify where it should go."
According to Shawen, the Instagram platform does not allow marketing through acquired accounts, plagiarized content, or unpublished advertising posts. The company has removed the offending account, which includes an account of 421 companies with 7 million fans, 421 thinks this is unreasonable.
An Instagram spokesperson said the company also deleted fake accounts, false likes and comments.
Facebook executives have learned about the brand's vulnerability. Although the company's flagship platform, Facebook, is still a giant in social media, Facebook user growth has slowed after the media exposed a large number of infringements of personal privacy scandals.
Facebook is now planning to take advantage of the Instagram brand. Last month, the company said it would change the official name of the platform to "Facebook on Facebook."
For Instagram, the risk in the future is that some users may doubt the authenticity of the content and the true charm of the personal account. They will think that Instagram is no longer an "oasis" of original content, they may leave Instagram.
Sean Spielberg, co-founder of social media influence analysis tool Instascreener, said: "The idea that everything on the Internet is fake is becoming more and more popular.
Money machine
This summer, approximately 75,000 people flocked to the Anaheim Convention Center in Orange County, California, USA to learn how to make money on Instagram, YouTube and other social media platforms.
At a conference dedicated to Facebook, there were more chairs on site than people. Elsewhere, crowds (including the big media of social media and the advertising directors of well-known brands) lined up to participate in a panel discussion on how to "stand out" hosted by Instagram executives.
The aspiring Big V hopes to one day be successful with celebrities such as Kardashian. Previously, Kardashian's company filed a lawsuit against a brand, saying it violated the rules and used its image. The lawsuit file disclosed that her post on Instagram sometimes charges advertisers hundreds of thousands of dollars.
Camu Lee, CEO of the Big V platform, said that some of the new social media influencers can charge $100 to $5,000 per post.
"The lifeline of Instagram is big V and creator," said Tania Yuki, chief executive of social media research firm Shareablee, which tracks the big V and brand on Instagram.
After graduating from high school and working at his parents' gas station, the 26-year-old Faisal Shafik registered the "@Fact" account and posted strange but true facts on Instagram.
This account now has 7.4 million followers and is the most successful of all the accounts he has created. His other accounts include "@epic", "@ghetto" and "@clothes".
It is reported that consumer fashion brands, mobile games and slimming tea ads have helped Shafiq and his brothers get a six-figure income. He said that he sometimes works 17 hours a day.
Others have found shortcuts. Amber Foster publishes daily posts about parenting, parenting and family life on Hilton Head Island, South Carolina. Forst discovered that some of her big V friends got a lot of Instagram fans through so-called gifts. Forst, she felt that she must try: "I want to be more influential."
Some big V fundraising purchases of prizes are usually wallets designed by coveted famous designers. Every big V encourages fans to focus on some accounts, which will make them eligible to participate in the draw.
Later, Foster's fans increased from 100,000 at the end of 2016 to 250,000 at the end of last year.
Instagram doesn't have a ban on giveaways, but Foster says it feels like a scam. She said that many of her new fans did not interact with her posts and seemed to be only interested in the draw. Since then, she has stopped this practice.
Some social media industry organizations have begun to create some guidelines and best practices for Big V and content creators. A guide document written by the influence marketing platform Captiv8 and leading advertisers such as Crocks, Stubb and Yangshi Media pointed out that vendor brands should better identify fraud in social media marketing.
The birth of hot content
Many of 421's content creators were originally small and well-known content authors on the Instagram platform.
The 27-year-old Matt Fain started posting posts about food after losing more than 100 kilograms. When he took over the food-related account at the age of 421, he produced a video about food suppliers preparing food at the Coachella Valley Music Festival in California. This video post received 2.5 million views.
The 20-year-old Salvador Bedodo built a huge network of fans by buying and selling Instagram accounts, including an account he created "@wastedoninstagram". He later sold the account to 421 for $120,000.
421 said that the acquisition of companies with Instagram accounts is in compliance with Instagram regulations, and these acquisitions sometimes cost tens of millions of dollars. Sometimes, 421 will continue to hire authors of the content of the acquired company.
It is reported that the supporters behind the 421 media company are venture capitalist Ms. Echel Francis and her husband, venture capitalist Diverse Francis and others, whose common goal is to expand the size of 421 Instagram fans and provide customization. Marketing plans to attract more advertisers.
For example, if a Hollywood studio wants to promote the upcoming movie on Instagram and reach the popularity of the entire platform, 421 companies can use tens of millions of fans of their accounts.
A source familiar with a film production company said that because of the large number of fans of the 421 company, they reported lower advertising prices than their peers.
For niche advertisers, the 421 can pinpoint a small percentage of the market audience.
421 company executive Ke Wen admitted that the company's use of Instagram posts violates copyright protection regulations and does not disclose the nature of marketing advertising. He said he is working with employees to ensure that this does not happen again.
Shaw, the product director of Instagram, said the company is working hard to enforce more content regulation. "If the content is repeated, whether it's from Instagram or elsewhere, it's definitely not original content," he said as he talked about the content.
Whether the 421 company can let fans come back and stay back for a long time is very important for investors. The company's major shareholder, Echel Francis, said, "What makes me sleepless at night is that the content is not good enough.
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