Instagram, the photo and video-sharing social media platform, is on track to become Meta Platforms’ (META) primary engine for advertising revenue in the United States by next year.
According to a new report from research firm Emarketer, Instagram is set to account for over half of Meta’s total advertising revenue in the US in 2025, underscoring the platform’s successful monetization strategies and growing dominance in the digital advertising space.
The rise of reels: fueling Instagram’s growth
This projection comes as Instagram is rapidly evolving into a video-first platform, with its Reels feature emerging as a key competitor against ByteDance’s TikTok and YouTube Shorts.
Users are increasingly drawn to short-form video content, and this shift in user behavior has driven marketers to embrace the format, prompting Meta to explore new ways to boost revenue through increased ad placements.
The rise of Reels is not just a trend, but a fundamental shift in how users consume content, making it a vital area of focus for Meta.
TikTok ban: a potential catalyst for Instagram
The potential ban of TikTok in the US could further accelerate Instagram’s growth in the advertising sector.
As Jasmine Enberg, principal analyst at Emarketer, notes, “If the TikTok ban is enforced in 2025, Instagram could capture over one-fifth of reallocated TikTok ad dollars in the US”
This would solidify Instagram’s position as the leading platform for digital marketers looking to reach a vast and engaged audience.
A glimpse into Instagram’s advertising landscape
In 2024, Instagram’s advertising revenue has primarily been generated from its Feed and Stories features, which account for 53.7% and 24.6%, respectively.
However, with the rising popularity of Reels and its increased monetization, Emarketer predicts a significant shift.
The combined revenue share from Instagram Explore, Reels, and potentially Threads, is projected to jump to 9.6% in 2025.
This shows a clear upward trajectory for Reels as a revenue driver for Instagram.
The future of Instagram advertising
As users spend a growing proportion of their time on Instagram watching videos, the platform’s focus on short-form content is set to continue to drive its advertising revenue growth.
This evolution reinforces Instagram’s strategic importance to Meta, and the platform is poised to solidify its status as a key advertising powerhouse in the US market.
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