As the social media platform enhances its product monetization, research firm Emarketer predicts that Instagram will generate over half of Meta Platforms’ advertising income in the US next year.
The Reasons for Its Significance
Because users find short-form videos more interesting, Instagram’s Reels compete with ByteDance’s TikTok and YouTube Shorts.
This is happening at a time when Meta is trying to increase product income by inserting more advertisements.
OVERVIEW
Reels and YouTube Shorts may emerge as appealing advertising substitutes if TikTok is banned in the US, which might accelerate Instagram’s expansion.
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According to Emarketer principal analyst Jasmine Enberg,
“Instagram is now a video-first platform, with users spending close to two-thirds of their Instagram time watching videos.”
“If the TikTok ban is enforced in 2025, Instagram could capture over one-fifth of reallocated TikTok ad dollars in the U.S.,” Enberg stated.
BY THE DATA
In 2024, Instagram’s Feed and Stories services accounted for 53.7% and 24.6% of its ad income, respectively.
The aggregate revenue share from Instagram Explore, Reels, and maybe Threads is anticipated to reach 9.6% in 2025, though, as Reels’ revenue grows.
