In 2018, Instagram generated an estimated 6.84 billion U.S. dollars in revenue. The photo sharing app’s revenue is projected to more than double to 14 billion U.S. dollars in 2019.
Instagram as Facebook revenue driver
Initially released in 2010 and quickly acquired by Facebook in 2012 for one billion U.S. dollars, Instagram has been in the public eye since its early days. Instagram’s monthly active users grew from a mere 90 million in January 2013 to over one billion MAU in September 2018 and the platform not showing any signs of slowing down. Apart from strong user growth, Instagram is also one of the most popular social media platforms used by marketers worldwide, second only to Facebook.
The mutually beneficial relationship between the social networks has resulted in billions of dollars in revenues, with experts projecting Instagram to generate more than 6.8 billion U.S. dollars in the fourth quarter of 2020. Industry analysts estimate that Instagram will grow to approximately 30 percent of Facebook’s ad revenue up until the end of 2020, with the majority of Facebook’s new revenue being generated through the photo-sharing platform.
Despite the rapid growth of Instagram under Facebook’s ownership and cross-platform promotion, not everything has been smooth sailing under the blue flag. In September 2018, founders Kevin Systrom and Mike Krieger announced their resignation amidst reports of culture and product clashes between Instagram and its parent company. Facebook was quick to appoint a new CEO, and under former Facebook News Feed product manager Adam Mosseri the social network has been trying to make the most of Instagram’s ad potential. In late June 2019, Instagram stated that it will launch ads in its Explore section. The platform already allows ads in the regular feed and Stories.
Projected revenue of Instagram from 2017 to 2019
(in billion U.S. dollars)
Access All Statistics. Starting from $708 / Year
Learn more about how Statista can support your business.
Tubefilter. (January 22, 2019). Projected revenue of Instagram from 2017 to 2019 (in billion U.S. dollars) [Graph]. In Statista. Retrieved July 16, 2020, from https://www.statista.com/statistics/271633/annual-revenue-of-instagram/
Tubefilter. "Projected revenue of Instagram from 2017 to 2019 (in billion U.S. dollars)." Chart. January 22, 2019. Statista. Accessed July 16, 2020. https://www.statista.com/statistics/271633/annual-revenue-of-instagram/
Tubefilter. (2019). Projected revenue of Instagram from 2017 to 2019 (in billion U.S. dollars). Statista. Statista Inc.. Accessed: July 16, 2020. https://www.statista.com/statistics/271633/annual-revenue-of-instagram/
Tubefilter. "Projected Revenue of Instagram from 2017 to 2019 (in Billion U.S. Dollars)." Statista, Statista Inc., 22 Jan 2019, https://www.statista.com/statistics/271633/annual-revenue-of-instagram/
Tubefilter, Projected revenue of Instagram from 2017 to 2019 (in billion U.S. dollars) Statista, https://www.statista.com/statistics/271633/annual-revenue-of-instagram/ (last visited July 16, 2020)