Research firm Emarketer estimates that Meta Platforms Inc.’s Instagram is projected to account for nearly half of the company’s advertising revenue in the US, highlighting the app’s role as a vital growth driver for the business.
Instagram has steadily transformed into an essential part of Meta’s ecosystem, not only for its revenue generation but also as a platform for features like Reels and Threads, which compete directly with other industry players. In 2021, Instagram generated $32.4 billion globally, representing 27% of Meta’s total sales. By early 2022, this figure climbed to almost 30% of Meta’s global revenues, according to court documents released earlier this year.
Forecasts suggest that Instagram will surpass $32 billion in US advertising revenue by 2025, signifying a growth of over 24% from the current year, according to Emarketer data. The app currently has more than 148 million users in the United States.
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According to Jasmine Enberg, principal analyst at Emarketer, Meta’s focus on video content has been a major factor driving this growth. She noted in a blog post, “Instagram has evolved into a video-first platform, with users spending nearly two-thirds of their time on the app watching videos.”
Meta has informed its investors that Instagram Reels, its short-form video feature competing with TikTok, constitutes over 50% of the total time users engage with the platform.
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