Instagram is expected to generate more than half of Meta’s advertising revenue in the United States by 2025, according to a report by research firm Emarketer.
This growth is linked to better monetization of Instagram’s features like Reels, Stories, and Explore.
Why It Matters
Instagram’s Reels competes with TikTok and YouTube Shorts, which are popular for short-form videos.
As more users engage with these videos, marketers are investing in this format. Meta is also increasing ads on Reels to boost revenue.
TikTok Ban Could Boost Instagram
If the US enforces a TikTok ban in 2025, advertisers might shift their budgets to platforms like Instagram and YouTube Shorts. This could further accelerate Instagram’s growth.
Key Insights
- Users spend about two-thirds of their Instagram time watching videos, said Jasmine Enberg, principal analyst at Emarketer.
- If TikTok is banned, Instagram could gain over 20% of TikTok’s ad revenue in the US.
Revenue Breakdown
In 2024, Instagram’s ad revenue came mostly from its Feed (53.7%) and Stories (24.6%). By 2025, Explore, Reels, and Threads are projected to account for 9.6% of Instagram’s ad revenue.
Meta’s focus on video and short-form content is positioning Instagram as a leader in digital advertising.
