TECH: Instagram is set to account for more than half of the meta platform's ad revenue in the United States next year as the social media platform improves monetization of its products, according to research firm eMarketer.
why is it important
Instagram's Reels competes with ByteDance's TikTok and YouTube Shorts, as users find short-form videos more engaging, prompting marketers to adopt this format, while Meta tries to increase revenue from the product by serving more ads. doing.
Reference
If the TikTok ban goes into effect in the US, Reels and YouTube Shorts could become attractive alternatives for advertising, boosting Instagram's growth.
key quote
“Instagram is now a video-first platform, with users spending nearly two-thirds of their Instagram time watching video,” Jasmine Enberg, principal analyst at eMarketer.
“If the TikTok ban goes into effect in 2025, Instagram could receive one-fifth of TikTok ad dollars reallocated to the US,” Enberg said.
according to data
In 2024, Instagram's advertising revenue primarily came from its Feed and Stories features, which contributed 53.7 percent and 24.6 percent, respectively.
However, as Reels revenue grows, the combined revenue share from Instagram Explore, Reels, and potentially Threads is projected to grow to 9.6 percent in 2025.
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