Meta Platforms Inc (NASDAQ:META) and Instagram Advertising Revenue

Meta Platforms Inc's Instagram is projected to account for 50% of the company's US advertising revenue in the near future, according to Emarketer's estimates. This highlights Instagram's increasing importance as a revenue generator for Meta.

Over time, Instagram has developed into a vital part of Meta's operations, not only due to its revenue potential but also through competitive features like Reels and Threads. In 2021, Instagram generated $32.4 billion globally, representing 27% of Meta's total sales. By early 2022, its contribution rose to almost 30%, as revealed in court documents.

By 2025, Instagram's US advertising revenue is expected to surpass $32 billion, a growth of over 24% from this year, based on Emarketer’s data. Currently, the app has over 148 million American users.

Meta's focus on video content has significantly boosted this growth. Jasmine Enberg, a principal analyst at Emarketer, noted that Instagram has transformed into a video-centric platform, with users spending nearly two-thirds of their time on the app watching videos.

Previously, Meta communicated to investors that Instagram Reels, a short-form video feature competing with TikTok, now accounts for over 50% of the time users spend on the app.

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