According to estimates from research firm Emarketer, Instagram, a subsidiary of Meta (META.US), will soon account for half of the company's advertising revenue in the USA.
According to the Zhithong Finance APP, estimates from research firm Emarketer indicate that Instagram, a subsidiary of Meta (META.US), will soon account for half of the company's advertising revenue in the USA, further consolidating its position as a key growth engine.
The photo and video sharing app Instagram is steadily expanding and is arguably the most important part of Meta's business, not only in terms of driving revenue but also as a platform for features like Reels and Threads in response to industry competitors.
In 2021, Instagram generated $32.4 billion in revenue globally, accounting for 27% of the company's total sales. According to court documents released earlier this year, by early 2022, Instagram accounted for nearly 30% of Meta's Global business.
Emarketer data shows that by 2025, Instagram's advertising revenue in the USA is expected to exceed $32 billion, growing by more than 24% year-on-year. This video sharing app currently has over 0.148 billion users in the USA.
Emarketer Chief Analyst Jasmine Enberg wrote in a blog post that Meta's focus on video content is a major contributor to this growth, stating, "Instagram is now a video-first platform, where users spend nearly two-thirds of their time watching videos."
Meta previously informed investors that its short video product Instagram Reels, designed to compete with TikTok, occupies more than 50% of users' time spent on Instagram.