Instagram, a company owned by Facebook, generated around $20 billion in ad revenues in 2019, according to a Bloomberg report published in February 2020. That’s about a quarter of parent company Facebook’s reported ad revenues. This result trumps that of Google’s YouTube which recently reported $15.1 billion in advertising revenues.
Did you know that Facebook acquired Instagram back in 2012 for just $75 million. This looks like small change considering how it has grown into a $20 billion company in just a short span of 8 years! Instagram has quickly grown into one of the favourite platforms for influencer marketing and advertisers because of its visual nature and strong user engagement. It’s also a platform that’s faced fewer privacy issues compared to Facebook over the last few years.
Facebook doesn’t typically disclose ad revenues for Instagram separately. However, research by eMarketer earlier this year estimates that user growth on Instagram will continue to slow down until 2023 to 6.7% from 10.1% in 2018. Yet, despite competition from TikTok and Snapchat its growth remains strong as it attracts a larger share of older users.
Are you considering jumping onto the bandwagon and embarking on your Instagram Advertising or Social Media Marketing this year in 2020? Make an appointment with us to discuss more!
