Research firm Emarketer estimates that Instagram, a subsidiary of Meta Platforms Inc., is expected to account for nearly 50% of the company’s advertising revenue in the US, highlighting the app’s vital role as a key growth driver for the organization.

Over time, Instagram has become an essential part of Meta’s business strategy, serving not only as a revenue generator but also as a platform for competitive features like Reels and Threads. In 2021, Instagram generated $32.4 billion in global revenue, representing 27% of Meta’s total sales. By early 2022, this figure climbed to almost 30% of Meta’s worldwide revenue, as revealed in court documents made public earlier this year.

Forecasts suggest that Instagram’s US advertising revenue is projected to surpass $32 billion by 2025, indicating a rise of over 24% from this year, according to Emarketer’s findings. The app has more than 148 million users across the United States.

Jasmine Enberg, principal analyst at Emarketer, pointed out that Meta’s focus on video content has greatly contributed to this expansion. In a recent blog post, she commented, “Instagram has evolved into a video-first platform, with users spending nearly two-thirds of their time on the app watching videos.”

Meta has conveyed to its investors that Instagram Reels, its short-form video feature that rivals TikTok, constitutes more than 50% of the total time users devote to the platform.

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