“I have earned $442,991 USD in just six months by building a dropshipping business that people loved”.
Feed your brain! Discover some mind-blowing facts and figures about dropshipping, ecommerce, digital marketing, social media and beyond.
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Two decades ago who would have thought that a platform would be used to connect, engage, entertain, do business, and market, all in one place!! Yet, Instagram, a member of Meta’s family of apps, has evolved into one of the most powerful and influential platforms globally, which has significantly changed how people promote content globally.
As the fastest-growing social media network, Instagram has seen a year-on-year increase in audience size of over 25%, making it a pivotal player in the digital advertising space. This post will delve into Instagram’s financial performance, varied revenue streams, valuation, and critical insights about its expansive user base and worldwide influence.
Instagram was founded as a photo-sharing platform with a simple interface and unique photo filters. It was established by Kevin Systrom and Mike Krieger in October 2010. The platform quickly became popular and was acquired by Facebook (Meta) in April 2012, almost two years after its inception, for approximately $1 billion in cash and stock.
Today Instagram has become the 3rd largest social network worldwide, with 37.74% of the world’s 5.3 billion internet users accessing the app monthly. What started as a simple photo-sharing app has now evolved to support businesses with various tools, such as shopping integrations and advertising options, making it an integral part of Meta's revenue model.
In recent years, Instagram has grown exponentially to become the key driver of the Meta platform's total earnings. Instagram primarily generates revenue through advertising, where brands and businesses can reach targeted audiences through sponsored posts, stories, and video ads. Here's a breakdown of how Instagram’s revenue is structured:
Instagram was the sixth most valuable media brand worldwide, by the end of 2023. The brand value of Instagram stood at USD 47.4 billion in 2023, roughly 41.5% more than USD 33.48 billion in 2022.
The total revenue generated by Instagram has increased over the years, mainly due to an increase in user activity and brand engagement. In 2023, Instagram generated an estimated $49.8 billion in revenue, continuing its upward trajectory since 2015. The platform’s ability to attract both users and advertisers has been key to this growth, making Instagram an integral part of Meta’s financial success.
Instagram revenue from advertising and selling photos has seen impressive growth and it has placed Instagram as a leading player in the global digital ad market. It generated USD 61.1 billion in ad revenue in 2023, representing a 19.6% increase from the previous year. According to a forecast, Instagram's advertising revenue will reach around USD 71 billion by the end of 2024, marking a 16% increase year-over-year.
In the total ad revenue of Instagram, Instagram Stories have become a significant revenue driver. Instagram Stories have contributed 26.7% to Instagram’s total ad revenue and generated USD 20.03 billion in 2023.
These numbers show that the revenue of Instagram is largely coming from advertising and its growing e-commerce integration. By 2023, Instagram had an Average Revenue Per User (ARPU) of USD 23.58, which is slightly less than Facebook's ARPU of USD 26.63. This is driven primarily by its visual-centric platform and robust advertising strategies, which have made it highly appealing to advertisers looking to target users with tailored ads.
Ever since Instagram was taken over by Facebook (Meta) it has steadily contributed to the overall revenue of Meta. In 2022, Instagram is estimated to have generated more than 30% of Meta’s total revenue, marking a significant rise from 3.4% in 2015. Hence, Instagram is a crucial driver of the financial success of Meta, with its advertising revenue playing a key role.
Now after knowing the total revenue of Instagram, let us learn some facts about the user statistics of Instagram.
Instagram boasts over 2 billion monthly active users and 500 million daily active Instagram stories users. This makes it the 3rd largest social media platform in the world. The number of Instagram users is expected to keep growing, adding about 361 million more people between 2024 and 2028. Instagram's new feature "Threads" gained 15.36 million users very quickly and became the first app to get 1 million users in just one hour after launch.
India has the biggest Instagram audience with 362 million users, followed by the U.S. with 169 million, and Brazil with 134 million. Brunei has the highest percentage of its population on Instagram, with 92% of people using the app.
As of 2024, Instagram is slightly more popular with men, who make up 50.6% of its global user base. The platform's popularity is strongest among younger audiences, with 32% of users aged between 18 and 24. In addition, 30.6% are aged between 25 and 34, showcasing the platform's ongoing appeal to younger adults.
But it is to be noted that among Gen Z, Instagram usage had declined slightly, with 57% of social media users engaging with the platform in 2024, down from 61% in 2020 and 64% in 2019.
To sum up, Instagram has grown from a simple photo-sharing app to one of the most influential digital platforms. With a robust user base exceeding 2 billion and a high engagement rate, Instagram continues to be a vital platform for brands and businesses. As one of the primary revenue contributors for Meta, Instagram's impact on advertising and e-commerce has redefined how businesses engage with their audiences.
As it evolves and integrates new features, Instagram’s influence and financial impact are expected to grow, cementing its status as a key player in the global digital advertising landscape. The platform can be leveraged by dropshipping entrepreneurs as well to reach and connect with customers and drive sales, using platforms like Spocket. In essence, Instagram represents a dynamic tool for both brand expansion and innovative marketing strategies.
