Instagram to Drive Over Half of Meta's U.S. Ad Revenue by 2025

Instagram is expected to bring in over half of Meta’s advertising revenue in the United States by 2025, according to Emarketer. This highlights how Instagram’s focus on short videos and advertising is helping it become a major revenue source for Meta.

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Why Instagram is Growing

Instagram’s Reels, a short-video feature competing with TikTok and YouTube Shorts, is attracting a lot of attention from users. Short videos are engaging and keep users hooked, making them a favorite for advertisers. Meta has been adding more ads to Reels, which is helping to increase its revenue.

The Impact of a TikTok Ban

If TikTok gets banned in the U.S., platforms like Instagram and YouTube Shorts are likely to benefit. Jasmine Enberg, a principal analyst at Emarketer, said, “Instagram is now a video-first platform, with users spending around two-thirds of their time on the app watching videos. If TikTok gets banned in 2025, Instagram could capture more than 20% of TikTok’s U.S. ad dollars.”

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Where Instagram’s Revenue Comes From

Currently, Instagram’s main sources of ad revenue are Feed posts (53.7%) and Stories (24.6%). By 2025, other features like Explore, Reels, and Threads are predicted to make up nearly 10% of Instagram’s total ad revenue. This shift shows how Instagram is diversifying its revenue streams to keep up with changing trends.

What It Means for Meta’s Future

Instagram’s growing share of Meta’s ad revenue shows how crucial the platform is for the company’s success. Advertisers are looking for platforms with high user engagement and creative ad formats, and Instagram is delivering on both fronts. With its focus on videos and innovative ad opportunities, Instagram is strengthening its role as a leader in digital advertising.

Also Read: Meta Fined €251M for 2018 Facebook Data Breach Exposing Millions of Users