According to estimates by research firm Emarketer, Meta's Instagram will soon account for half of the company's advertising revenue in the United States, 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 driving revenue but also as a platform for features like Reels and Threads to compete with industry rivals.
In 2021, Instagram generated $32.4 billion in revenue worldwide, 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 United States is expected to exceed $32 billion, a year-over-year increase of more than 24%. This video-sharing application currently has more than 148 million users in the United States.
Emarketer's chief analyst Jasmine Enberg wrote in a blog post that Meta's focus on video content is a major contributor to this growth, "Instagram is now a video-first platform, with users spending nearly two-thirds of their time on Instagram watching videos."
Meta previously told investors that the short video product Instagram Reels, which competes with TikTok, accounts for more than 50% of the time people spend on Instagram.
