Facebook is losing the interest of teens according to recent statistics. We reported that Facebook’s teen usage is way down, especially among younger teens. New social networks such as Snapchat, WireClub, and Chat-Avenue are gaining users every day, while teens on Facebook are steadily decreasing the amount of time spent on the site on a daily basis.

Instagram

One of the social networks we did not mention in the previous report is Instagram. The reason for this exclusion is that Facebook purchased Instagram in April of 2012. When I wrote the previous article, I treated Instagram as if it were a part of Facebook. However, it is clear that Instagram is definitely catching the interest of teen users. The purchase of Instagram in the amount of $1 billion raised many eyebrows on Wall Street as analysts and investors alike wondered what the social network was thinking when it bought the photo-sharing site.

Facebook Not Really Losing Users

Many of the teen users on Facebook have begun using Instagram to share their photos and this has contributed to the reduction in teen activity on Facebook. However, because of the relationship of Facebook to Instagram, the site is not really losing its teen audience, it is merely shifting them to another arm of its business.

Think of a theme park where all of the teenagers love to ride the water rides. Suddenly, the park manager notices that the water rides are not attracting the teens very much anymore and becomes worried. However, upon closer inspection, the manager finds that the teens have not left the theme park entirely, but have simply moved to the roller coaster areas instead. This doesn’t constitute a loss of business for the park, it simply means the business has shifted directions.

Can Facebook Monetize Instagram?

If Facebook wants to capitalize on its teenage audience, then it is imperative that the social network finds a way to monetize Instagram. Just last week, Michael Kors made history by launching the very first Instagram advertisement campaign. Instagram is attempting to deliver magazine quality ads to its clients, and this could very well be Facebook’s saving grace in the waning interest of teenage users.

Currently Instagram has 150 million active users on a monthly basis, which is a far cry from the more than 1 billion users Facebook now has. However, this is the start to a very lucrative advertising network that is yet to be fully tapped. As of right now, Instagram is not strong enough to make a major impact in Facebook’s overall business, but if the user-base continues to grow, it could very well be Facebook’s salvation in the future.

The purchase of Instagram may very well be the one thing that keeps Facebook relevant to a younger audience, and it may well grow to a valuable source of revenue.