Share

Instagram US mobile ad revenue set to overtake Google and Twitter

Facebook-owned Instagram is projected to see its worldwide mobile ad revenues soar to $2.81bn by 2017, eclipsing the $595m it raked in this year, according to the latest forecast published by eMarketer.

Advertisement

“Now that Instagram is opening up, there is a lot of pent-up demand”.

The United States is expected to account for the majority of the Instagram advertising revenue, making up 95% this year, 92% next year and 85% in 2017.

Instagram’s sponsored images and videos, combined with the automation, targeting and measurement tools of parent company Facebook, will push its revenues to $600 million this year, according to a new report from eMarketer.

In particular, she said, Instagram advertisers will be able to use a full slate of Facebook’s targeting tools, including its popular Custom Audiences feature. Instagram ads were launched in the US in September 2013 and in the UK the following year.

Another interesting prediction from eMarketer is that over one third of the United States’ population will use Instagram by 2019, meaning that for businesses looking to market to consumers in the U.S. Instagram needs to be considered from both an organic perspective as well as a paid advertising perspective.

“I’m confident there will be a queue of brands in APAC waiting to sign up for Instagram ads”, said Simon Kemp, regional managing partner for Asia at We Are Social and founder of strategic marketing consultancy Kepios.

Last year the social photo sharing platform passed Twitter to become the second-largest social media network.

With 300 million active monthly users-70 per cent of whom are outside the US-a global rollout of Instagram ads seems inevitable. Twitter’s US user base grew 12.1% in 2014 to reach 48.4 million users.

Internationally, Instagram’s growth hasn’t been as strong, and other mobile social apps will continue to challenge it. So far, however, brand engagement on the platform has been high, and coupled with a solidly growing user base and new ad offerings, the mobile ad revenue picture looks bright. Data is weighted based on methodology and soundness.

Advertisement

ADOTAS, founded in 2003, is a premier news publication focused on the Internet advertising and media industry.

REPORT: Instagram could be making more money from mobile ads than Google and