Although Facebook has not yet revealed its exact numbers, a new report suggests that Instagram is not making more revenue than its core service.
The data was analyzed after several reports showed that Facebook app usage in the U.S. is decreasing, yet the money it makes from its users is going steady (i.e. around $150 to $200 annually per user), on the other hand users are spending more time on Instagram now, however, the app is not making much in terms of revenue per user (which is around $50 to $100 annually).
Chart courtesy of: Axios.
Last week Instagram announced that it would also be adding ads within its ‘Explore’ tab, a section that shows customized recommendations to the users. According to Facebook, Instagram’s ‘Explore’ tab was the only area that was not commercialized. It is also a popular browsing feature for users, with more than 50% of Instagram’s 1 billion+ users leveraging it on a monthly basis.
Instagram’s push to increase ad revenue comes after several executives showed concern of the dwindling user engagement on Facebook. However, a recent report shows that Facebook is continuing to grow its revenue per user with video ads and the Marketplace section.
Facebook has also promoted its advertising executive David Fischer to chief revenue officer – giving him more oversight into growing revenue across all of its properties.
Read next: Instagram Head Denies Company Listens Through Smartphones
The data was analyzed after several reports showed that Facebook app usage in the U.S. is decreasing, yet the money it makes from its users is going steady (i.e. around $150 to $200 annually per user), on the other hand users are spending more time on Instagram now, however, the app is not making much in terms of revenue per user (which is around $50 to $100 annually).
Chart courtesy of: Axios.
Last week Instagram announced that it would also be adding ads within its ‘Explore’ tab, a section that shows customized recommendations to the users. According to Facebook, Instagram’s ‘Explore’ tab was the only area that was not commercialized. It is also a popular browsing feature for users, with more than 50% of Instagram’s 1 billion+ users leveraging it on a monthly basis.
- Also read: An Example of how Instagram is Taking Proactive Measures to Help users with Mental Health Problems
Instagram’s push to increase ad revenue comes after several executives showed concern of the dwindling user engagement on Facebook. However, a recent report shows that Facebook is continuing to grow its revenue per user with video ads and the Marketplace section.
Facebook has also promoted its advertising executive David Fischer to chief revenue officer – giving him more oversight into growing revenue across all of its properties.
Read next: Instagram Head Denies Company Listens Through Smartphones
