Instagram will account for half of Meta’s advertising revenue

Instagram will account for half of Meta’s advertising revenue
Instagram will account for half of Meta’s advertising revenue

Keystone-SDA

Instagram will represent more than half of Meta’s turnover in the United States in 2025 according to the analyst firm Emarketer, thanks to its success with users and the fine optimization of advertising spaces with artificial intelligence ( AI).

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December 18, 2024 – 2:15 p.m.

(Keystone-ATS) Acquired in 2012 by the Californian group – which was then called Facebook – for a billion dollars, the social network focused on images will bring it more than 32 billion dollars (28.6 billion francs) in advertising revenue in the United States. United next year, or a little more than 50% of its revenues in the country, according to a study by the firm.

Ten years ago, this share barely exceeded 7%.

And revenue from the application “will continue its double-digit growth”, underlines Emarketer: +24.4% in 2025 compared to 2024.

“While other platforms are flooding their services with more ad placements, Meta is focusing on making their ads more effective, primarily through AI,” analyst Jasmine Enberg said in a statement.

Spurred by the success of TikTok and its short entertaining videos to scroll endlessly, the social media giant launched “Reels” at the end of 2021, imitating this format.

Jump in the number of users

“Reels have been a major driver of Instagram’s growth as the focus has shifted to video,” explained Jasmine Enberg. “Users spend almost two-thirds of their time on Instagram watching videos. »

Emarketer estimates that the platform has 148.73 million U.S. users, up from fewer than 62 million in 2015.

The expertise of the world number two in online advertising (behind Google) is notably due to its ability to generate higher revenue per user than its competitors: Instagram earns $223 on average per American user per year and Facebook, $191.

TikTok comes in third place with $109 per user, according to the firm’s figures.

The very popular platform, owned by the Chinese group ByteDance, claims 170 million users in the United States.

For years, it has overshadowed many companies whose business model is based on consumer attention, from Meta to Netflix.

But it is threatened with ban in the United States by a law which requires ByteDance not to part with it by January 19, in the name of national security. TikTok has just appealed to the US Supreme Court.

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