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Business Model Canvas for Social Media Companies

The Problem:

Social media companies collect its users' personal data and sells that data to advertising companies so they can better advertise us. Their recommender algorithms and app features are purposeful in making users obsessed with using the app, this is all in preparation of making users the best product for advertisers. The bottom line is that their business model has had a harmful effect on users without them even knowing it. 

 

Our Case Study: Instagram

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How do we change the cost structure of social media companies?

Cutting out all advertising, asking users to pay a subscription fee for using a social media app and extra for features. But is this doable? Will users want to use the app?

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Other Complications?

Social media apps such as Instagram is no longer a platform to simply share photos and videos. Instagram has become a hub for business and its lack of subscription fees has made it accessible to small business owners and creators.  

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If we can't change the way Instagram makes money, how can we make Instagram more ethical and inclusive based on its current business model?

#1) Stop selling personal data

#2) Ethical review boards that are completely outsourced

#3) Age limits on advertising

#4) Advertising can be personalized by the user - what ads do they want to see?

#5) Ask bigger businesses to pay a fee for selling on Instagram, have a sliding scale for smaller businesses

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