Instagram Ad Revenue (2017–2024)
With global digital ad spend on the rise year after year, it’s no surprise that popular marketing platforms like Facebook and Google have experienced yearly increases in their ad revenues.
The popular photo-sharing app Instagram is no exception to this trend. Here’s a closer look at Instagram’s annual revenues from ads from 2017 to 2024.
Instagram annual revenue breakdown by year
|
Year |
Annual revenue |
Annual growth |
|---|---|---|
|
2017 |
$3.4 billion |
|
|
2018 |
$8.6 billion |
+152.94% |
|
2019 |
$18.9 billion |
+119.8% |
|
2020 |
$28.4 billion |
+50.3% |
|
2021 |
$48.3 billion |
+70.1% |
|
2022 |
$51.1 billion |
+5.8% |
|
2023 |
$61.1 billion |
+19.6% |
|
2024 |
$70.9 billion |
+16.0% |
According to a recent report, Instagram’s ad revenues are expected to hit $70.9 billion in 2024. Given an estimated 1.4 billion users worldwide, Instagram’s revenue per user averages at just over $50.
Instagram’s ad revenues from 2024 represent a 16% increase from 2023, when Instagram’s annual revenues from ads totaled $61.1 billion, the first time they exceeded the $60 billion milestone.
→ Click Here to Launch Your Online Business with Shopify
This year’s increase marks a slight deceleration from the previous year’s growth in total ad revenues. In 2023, Instagram’s ad revenues grew by 19.6%. In 2022, Instagram saw its revenues grow by just 5.8%, from $48.3 billion in 2021. However, in 2021, Instagram ad revenues registered a surge of 70.1%, from $28.4 billion in 2020, to $48.3 billion. This is also the fastest annual growth rate industry analysts expect from 2020 to 2024.
From 2017 to 2024, Instagram’s ad revenue is set to increase by a total of $67.5 billion, a growth of nearly 2,000%. The average annual growth rate for this period is 62.1%.
Instagram ad revenue: drivers behind its growth
Experts attribute Instagram's increasing annual advertising revenues to several key factors: the platform's enhanced social commerce features, parent company Meta's advancements in AI to support content recommendation and advertising automation, and its successful monetization of Instagram Reels.
Plus, despite facing stiff competition from TikTok, data reveals that Instagram Reels campaigns achieve almost double the audience reach compared to those on TikTok.
Instagram annual revenue breakdown by ad type
The numbers behind Instagram’s annual revenue also show that the ad type that’s responsible for most of the platform’s revenue is in-feed ads. These are ads that users see as they scroll through their Instagram feeds.
Ads on Instagram Stories constituted 26.7% of the platform’s ad revenues in 2023—up from 2022’s 26.4%. However, analysts expect advertisers to increase their ad spend on Instagram Stories in the coming years, with revenue growth expected to outpace that of in-feed ads.