Instagram Is Projected To Control More Than Half Of Meta Ad Revenue In The US By 2025

Instagram is predicted to account for more than half of Meta Platforms (photo; dock. pexels) ad revenue.

JAKARTA Instagram's social media platform is predicted to account for more than half of Meta Platforms' ad revenue in the United States by 2025. This is in line with Instagram's efforts to increase monetization of various features on its platform, according to a report from research firm Emarketer.

As one of TikTok's main competitors and YouTube Shorts, the Instagram short video feature, Reels, is getting more and more attention from users. This short video format is considered more attractive by the audience, so many advertisers are starting to adopt it. With Meta continuing to increase ads on Reels, the revenue contribution from this feature is expected to increase significantly.

According to reports, if the ban on TikTok in the US actually goes into effect in 2025, Reels and YouTube Shorts could potentially be a major alternative to advertisers, providing a great opportunity for Instagram to seize ad market share previously dominated by TikTok.

"Instagrams are now a video-based platform, with users spending nearly two-thirds of their time on Instagram watching videos," said Jasmine Enberg, lead analyst at Emarketer.

He added, "If the TikTok ban goes into effect by 2025, Instagram could get more than a fifth of the previously allocated advertising budget for TikTok in the US."

Instagram Advertising Revenue In 2024, the majority of Instagram's ad revenue comes from Feed (53.7%) and Stories (24.6%) features. However, as revenue from Reels increases, as well as other features such as Explore and possible Threads, the share of revenue from these features is expected to increase to 9.6% by 2025.

With this shift, Instagram not only strengthens its position as a video platform, but is also one of the main pillars of Meta's future revenue growth.