Instagram to Account for Half of Meta's U.S. Ad Revenue by 2025

According to eMarketer's predictions, Meta Platforms Inc (NASDAQ:META)'s Instagram will account for 50% of the company's US advertising revenue in the near future. This forecast highlights the growing importance of Instagram for Meta and its emergence as a central source of revenue.

Over time, Instagram has become a critical part of Meta’s operations not only for its revenue-generating capacity but also for competitive features such as Reels and Threads. In 2021, Instagram generated $32.4 billion in global revenue, representing 27% of Meta's total sales. Early in 2022, according to court documents published at the beginning of the year, Instagram's contribution to Meta's global business had nearly risen to 30%.

eMarketer's data suggests that by 2025, Instagram's US advertising revenue is expected to exceed $32 billion, indicating an increase of over 24% from this year. The app currently has more than 148 million American users.

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

Meta previously stated in its investor communications that its short-form video feature, Instagram Reels, which competes with TikTok, accounts for more than 50% of the time users spend on the app.

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