All of this might make it seem like Meta would be relying less on Facebook for its revenue, but in spite of the fact that this is the case it is estimated that around 58.5% of the corporations ad revenue will come from Facebook in 2023.
With all of that having been said and now out of the way, it is important to note that Instagram is becoming an increasingly important revenue stream for the tech juggernaut. Currently, about 41.5% of Meta’s ad revenue comes from Instagram. That alone is impressive considering that Instagram was meant to be an add on with Facebook ostensibly being the premier social media product.
What’s more, Instagram is going acquire an increasingly large portion of Meta’s ad revenues over the next few years. Facebook’s ad revenue for 2022 sits at $69.41 billion, which is down 5% from the $72.72 billion it earned in 2021.
Meanwhile, Instagram has seen a massive 50% increase in ad revenues between 2020 and 2022. It has gone from representing just a third of Meta’s ad revenues to over 41%. Facebook’s ad revenues are expecting to start growing again from next year, but the rate of growth will be so slow that Meta will increasingly start relying on Instagram to bridge the revenue gap.
Most estimates predict that Meta will be getting 44% of its ad revenue from Instagram by 2024, with a 38% increase in revenue predicted for the social media platform from 2022. Facebook’s own ad revenue growth rate is expected to be a meager 8% in the same timeframe, and that will be a key aspect of Facebook’s fall from grace as Instagram continues to rise.
H/T: eMarketer
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by Zia Muhammad via Digital Information World
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