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How Much Does Instagram Make A Year?

Last updated: 13.01.2023
Author: Branka

Are you curious about how much money a popular platform like Instagram makes? With over 200 million active monthly users, it’s no surprise that Instagram has become one of the world’s most profitable social media platforms. In this blog post, we will explore how much money Instagram brings each year and what potential opportunities may be available to businesses hoping to take advantage of its growing user base. From understanding their revenue streams, advertising options, and more, discover all the insight you need about tapping into this powerful tool for growth.

How much does Instagram make a year?

In 2021, there were 1.21 billion monthly active users of Meta’s Instagram, making up over 28 percent of the world’s internet users. 

By 2025, it has been forecast that there will be 1.44 billion monthly active users of the social media platform, which would account for 31.2 percent of global internet users.

Based on various reports, Instagram makes around $20 billion annually in advertising revenue in the United States alone, making it a highly prized social media property for any B2B brand. 

Instagram Stories has seen a meteoric rise in advertising revenue over the last few years, expected to grow by almost 200% from 6.9 billion U.S. dollars in 2020 to an astonishing 20+ billion this year! This lucrative platform continues its growth trajectory with no signs of slowing down anytime soon – highlighting just how powerful social media ads can be for businesses worldwide!

Moreover, B2B sellers can use the platform to foster relationships with potential customers by leveraging tried and true B2B strategies like influencer marketing campaigns or storytelling techniques to engage followers. 

Additionally, with its constantly changing algorithms and innovative ad formats, B2B buyers and sellers looking to increase profits should keep Instagram in mind when budgeting their following acquisition tactics.

Source: Statista

Top retail brands on Instagram

With their hefty 119+ million Instagram followers, it’s no wonder Nike is the top retail brand! Following in its footsteps are Victoria’s Secret (68.8M), Chanel (42.8M), Gucci, and ZARA, with 42.6/42.3 million, respectively – making a total of almost 270 MILLION engaged social media users across these five iconic brands alone! 

If you need extra exposure for your business or brand, the world of Instagram opens up fantastic opportunities to connect with this massive group of potential customers.

Source: Social Blade, 2020

How much is Instagram revenue per user?

Only recently, it has been easy to answer the question: How much is Instagram’s revenue per user? However, B2B buy-sell dynamics within the company’s monetization strategies often complicate estimations. 

However, new reports suggest that, on average, Instagram earns about $7.91 per user annually. This mixture of B2B and B2C revenue streams include unskippable sponsored posts and in-app purchases. 

With 2.5+ billion monthly active users, this adds up to a considerable yearly income for Facebook – Instagram’s parent company – with Instagram landing the lion’s share of B2B ad spending among other consolidated services like Messenger user ads and Audience Network display placements. 

Revenue per user has become increasingly lucrative on the platform despite being one of the younger members of its tech peers.

Source: Business of Apps

General Instagram Ads Revenue Statistics

A recent study by GlobalWebIndex showed that Instagram is estimated to generate nearly $20 billion in mobile advertising revenue this year, making it one of the fastest-growing platforms for digital marketers. 

Between 2016 and 2018, the number of Instagram users spending at least 1 hour per day on the platform nearly doubled from 32% to 59%. 

With more than 800 million monthly active users worldwide, 50% of whom are reported to be daily active users, there’s strong evidence for mobile advertisers looking to leverage Instagram as part of their digital marketing mix. 

Furthermore, 82% of all surveyed Instagram users claimed they had interacted with an advertisement on the platform within the last 30 days. 

This high level of engagement illustrates that when crafted correctly, ads served on Instagram can have tremendous reach and even increase brand loyalty. Additionally, the average ad spends per user was reported at $57 in 2019, with 147 million active advertisers on Instagram in the same period. 

Source: Global Web Index

Conclusion

While it’s hard to determine precisely how much money Instagram is making, one thing is for sure; by the looks of its growing user base, available marketing tools, and inventive ways of monetizing content, it seems that Instagram should be expecting its net worth to reach even greater heights soon.