Instagram to account for half of Meta's US ad revenue by 2025

Investing.com -- Meta Platforms Inc (NASDAQ:META ).'s Instagram is projected to comprise 50% of the company's US advertising revenue in the near future, as per Emarketer's estimates. This prediction underscores Instagram's growing significance as a central revenue generator for Meta.

Over time, Instagram has evolved into a crucial segment of Meta's operations, not only for its revenue-driving capabilities but also for its competitive features like Reels and Threads. In 2021, Instagram brought in $32.4 billion globally, which represented 27% of Meta's total sales. By early 2022, Instagram's contribution to Meta's global business had increased to almost 30%, as revealed in court documents published earlier this year.

By 2025, Instagram's US advertising revenue is anticipated to exceed $32 billion, marking a rise of over 24% from this year, based on Emarketer's data. The app currently boasts over 148 million American users.

Meta's emphasis on video content has been a significant factor in this growth, according to Jasmine Enberg, a principal analyst at Emarketer. She noted in a blog post that Instagram has become a video-centric platform, with users dedicating nearly two-thirds of their time on the app to watching videos.

In prior communications with investors, Meta revealed that Instagram Reels, a short-form video feature that competes with TikTok, accounts for over 50% of the time users spend on the app.

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Source: Investing.com