Is Instagram the Future of Meta's Advertising Revenue? Reels and TikTok Ban May Hold the Answer

According to a report by research firm Emarketer, Instagram will account for over half of Meta Platforms' ad revenue in the US next year. It is because the engagement on Instagram is increasing with more users joining the platform every month, and this is affecting the revenue of the platform positively too. Instagram reels, which are competing with TikTok and YouTube shots, also get a high number of engagements and marketers are quite interested to place more ads on Instagram because of this very reason. As marketers will invest more on the platform, it will boost the overall revenue of Instagram.

There is also a chance that TikTok may get banned in the US so Instagram Reels and YouTube Shorts will become strong competitors for advertising and Instagram will see some rise in its growth. Principal analyst at Emarketer, Jasmine Enberg, says that users are spending two-thirds of their time by watching reels on Instagram so it is quite right to say that Instagram is now a video platform. If TikTok gets banned in the US, one fifth of TikTok ad dollars in the US will come to Instagram, helping in the growth of its revenue. 53.7% of Instagram revenue in 2024 came from its feed while 24.6% of the revenue came from Stories on Instagram. There will be a 9.6% rise in Instagram’s revenue in 2025 after combining revenue from Instagram feed, reels and Threads. So, it seems that better days are coming for Meta, especially Instagram, in the US in 2025.


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