Social Media

Instagram's users are up but number of photos shared is down, said report

Mark Zuckerberg, Facebook CEO
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A new report suggests that social media juggernaut Instagram may be in trouble.

The Information, citing two people briefed on the numbers, reported that even though Instagram grew its user base between 2013 and 2015, the average number of photos shared by each user declined. The report said it couldn't detail exactly how large the decline was, and added it was also unsure if Instagram's decrease in posts has continued throughout 2016.

Instagram announced last week that it had grown to 500 million users, with 300 million daily active users. The company claimed that 80 percent of its users were from outside the U.S. EMarketer projected Instagram ad revenue will reach $1.48 billion in 2016, and will hit $2.81 billion by 2017.

However, there are concerns that other mobile-first platforms like Snapchat may be taking the mantle as the top social photo service, especially among youth. More than 100 million people use Snapchat daily, with the majority of users under 35 per the company.

Sources told The Information that Instagram executives have considered adding new products to increase activity, including live video, 360-degree video and reposting of images.

An Instagram spokesperson told CNBC that it is "thrilled with the continued strong growth and engagement of the Instagram community," adding that users spend an average of more than 21 minutes each day in the app.

"We're happy with the growth and enthusiasm we see for the products we've invested in over the past year, from Instagram Direct, Explore and Video to our creative apps like Boomerang and Layout," they said.