With global digital ad spend on the rise year after year, it’s no surprise that popular marketing platforms like Facebook and Google have experienced yearly increases in their ad revenues. 

The popular photo-sharing app Instagram is no exception to this trend. Here’s a closer look at Instagram’s annual revenues from ads from 2019 to 2023.

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Instagram annual revenue breakdown by year

According to a recent report, Instagram’s ad revenues in the US are expected to hit $33.3 billion in 2022. Given an estimated 123.1 million users there, Instagram’s revenue per user averages at around $270.11.

Instagram’s ad revenues from 2022 represent a 25.66% increase from 2021, when Instagram’s annual revenues from ads totaled $26.5 billion. Analysts say Instagram’s revenue growth is currently outpacing that of Facebook’s. 

As significant as the increase is this year, it actually marks a deceleration from the previous year’s total ad revenues. It is also the slowest growth rate in at least three years. In 2021, Instagram’s ad revenues grew by as much as 52.07%, from $17.4 billion in 2020. The previous year registered an increase of 40.32%, from $12.4 billion in 2019.

Instagram’s ad revenues are forecasted to continue rising at least for another year. In 2023, total revenue from ads is predicted to increase by 19.4%, to $39.7 billion. With analysts expecting the number of Instagram users in the US to hit 127.2 million in 2023, this means that Instagram’s revenue per user there will be around $312.11.

From 2019 to 2023, Instagram’s ad revenue is set to increase by $27.3 billion, a whopping 220.16% increase in just four years. The average annual growth rate is forecasted at 34.36%. 

Instagram annual revenue breakdown by ad type

The numbers also show that the ad type that’s responsible for most of the platform’s revenue is in-feed ads. These are ads that users see as they scroll through their Instagram feed. 

On the other hand, ads on Instagram Stories constitute 26.4% of Instagram’s ad revenues in 2022. However, analysts expect advertisers to increase their ad spend on Stories in the coming years, with revenue growth expected to outpace that of in-feed ads. 

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