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It was a wake-up call to me to learn that Airbnb was by no means unique: Instagram started as a location-based social network called Burbn (which had an optional photo feature). It attracted a core group of users and more than $500,000 in funding. And yet the founders realized that its users were flocking to only one part of the app—the photos and filters. They had a meeting, which one of the founders recounts like this: “We sat down and said, ‘What are we going to work on next? How are we going to evolve this product into something millions of people will want to use? What is the one thing that makes this product unique and interesting?’”7 The service soon retooled to become Instagram as we know it: a mobile app for posting photos with filters. The result? One hundred thousand users within a week of relaunching. Within eighteen months, the founders sold Instagram to Facebook for $1 billion. I know that seems simple, that the marketing lesson from Instragram is that they made a product that was just awesome. But that’s good news for you—it means there’s no secret sauce, and the second your product gets to be that awesome, you can see similar results. Just look at Snapchat, which essentially followed the same playbook by innovating in the mobile photo app space, blew up with young people, and skyrocketed to a $3.5-billion-dollar valuation with next-to-no marketing.

The Israeli social media strategy aimed to involve both domestic and global supporters of its military missions. By doing so, and asking backers to post their own supporting tweets, Face-book posts, or Instagram images, the IDF created a collective mission that other nations could easily mimic by stirring up nationalist fervor online. During Operation Pillar of Defense, the IDF encouraged supporters of Israel to both proudly share when “terrorists” were killed while at the same time reminding a global audience that the Jewish state was a victim. It was a form of mass conscription to the cause through the weaponization of social media.12 This was war as spectacle, and the IDF was spending big to make it happen. The IDF media budget allowed at least 70 officers and 2,000 soldiers to design, process, and disseminate official Israeli propaganda, and almost every social media platform was flooded with IDF content. Today, the IDF Instagram page regularly features pro-gay and pro-feminist messaging alongside its hard-line militaristic iconography.13 On October 1, 2021, the IDF posted across its social media platforms a photo of its headquarters swathed in pink light with this message: “For those who are fighting, for those who have passed, and for those who have survived, the IDF HQ is lit up pink this #BreastCancerAwarenessMonth.” Palestinian American activist Yousef Munayyer responded on Twitter: “An untold number of women in Gaza suffer from breast cancer and are routinely denied adequate treatment and timely lifesaving care because this military operates a brutal siege against over 2 million souls.” On Instagram, however, most of the comments below the post praised the IDF.

Switching over Entire Networks Part of why cherry picking can be dangerous for the incumbent is that the upstart networks can reach over and directly acquire an entire set of users who have been conveniently aggregated on your network. It’s just software, after all, and users can spread competitors within an incumbent’s network by using all the convenient communication and social tools. Airbnb is again an example of this. The company not only unbundled Craigslist and turned the shared rooms idea into an entire product, but they actually used Craiglist users to advertise Airbnb to other users. How? Early on, Airbnb added functionality so that when a host was done setting up their listing, they could publish it to Craigslist, with photos, details, and an “Interested? Got a question? Contact me here” link that drove Craigslist users back to Airbnb. These features were accomplished not by using APIs provided by Craigslist, but by reverse-engineering the platform and creating a bot to do it automatically—clever! I first wrote about this in 2012 on my blog, in a post titled “Growth Hacker is the new VP Marketing” with this example in mind. By the time Craigslist decided it didn’t like this functionality and disabled it, months had passed and Airbnb had formed its atomic network. The same thing happened in the early days of social networks, when Facebook, LinkedIn, Skype, and others grew on the back of email contacts importing from Hotmail, Yahoo Mail, and other mail clients. They used libraries like Octazen—later acquired by Facebook—to scrape contacts, helping the social networks grow and connect their users. At the time, these new social networks didn’t look like direct threats to email. They were operating within niche parts of messaging overall, focused on college and professional networks. It took several years for the email providers to shut down access after recognizing their importance. When an incumbent has its network cherry-picked, it’s extra painful along two dimensions: First, any network that is lost is unlikely to be regained, as anti-network effects kick back in. And second, the decline in market share hits doubly hard, which has implications for being able to raise money.

In other words, not all networked products experience context collapse as rapidly as others. When users are able to group themselves, they prove particularly resilient. Facebook Groups provide separate smaller and more disjointed spaces away from the main newsfeed, as do Snap Stories as a complement to the app’s 1:1 photo messaging features—both provide a network within a network that can hold its own context. Instagram’s usage patterns include “finstas”—secondary and tertiary accounts—where different content can be shared. Each has different sets of followers attached to them, so that photos can be posted away from the prying eyes of parents and bosses.

Over the years, Facebook has executed an effective playbook that does exactly this, at scale. Take Instagram as an example—in the early days, the core product tapped into Facebook’s network by making it easy to share photos from one product to the other. This creates a viral loop that drives new users, but engagement, too, when likes and comments appear on both services. Being able to sign up to Instagram using your Facebook account also increases conversion rate, which creates a frictionless experience while simultaneously setting up integrations later in the experience. A direct approach to tying together the networks relies on using the very established social graph of Facebook to create more engagement. Bangaly Kaba, formerly head of growth at Instagram, describes how Instagram built off the network of its larger parent: Tapping into Facebook’s social graph became very powerful when we realized that following your real friends and having an audience of real friends was the most important factor for long-term retention. Facebook has a very rich social graph with not only address books but also years of friend interaction data. Using that info supercharged our ability to recommend the most relevant, real-life friends within the Instagram app in a way we couldn’t before, which boosted retention in a big way. The previous theory had been that getting users to follow celebrities and influencers was the most impactful action, but this was much better—the influencers rarely followed back and engaged with a new user’s content. Your friends would do that, bringing you back to the app, and we wouldn’t have been able to create this feature without Facebook’s network. Rather than using Facebook only as a source of new users, Instagram was able to use its larger parent to build stronger, denser networks. This is the foundation for stronger network effects. Instagram is a great example of bundling done well, and why a networked product that launches another networked product is at a huge advantage. The goal is to compete not just on features or product, but to always be the “big guy” in a competitive situation—to bring your bigger network as a competitive weapon, which in turn unlocks benefits for acquisition, engagement, and monetization. Going back to Microsoft, part of their competitive magic came when they could bring their entire ecosystem—developers, customers, PC makers, and others—to compete at multiple levels, not just on building more features. And the most important part of this ecosystem was the developers.

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