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 2020 to 2024.

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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 $50.6 billion in 2023. Given an estimated 168.6 million users there, Instagram’s revenue per user averages at around $300.

Instagram’s ad revenues from 2023 represent a 16.9% increase from 2022, when Instagram’s annual revenues from ads totaled $43.3 billion. 

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This year’s increase marks a significant acceleration from the previous year’s total ad revenues. In 2022, Instagram’s ad revenues grew by just 2.6%, from $42.2 billion in 2021. However, the previous year registered a surge of 50.2%, from $28.1 billion in 2020. This is also the fastest annual growth rate industry analysts expect from 2020 to 2024. 

From 2020 to 2023, Instagram’s ad revenue is set to increase by $22.5 billion, a whopping 80.1% increase in just three years. The average annual growth rate for this period is 23.2%. 

Looking ahead, experts forecast that revenues will continue to rise for at least another year. In 2024, total revenues are set to increase by 17.9%, to $59.6 billion.

Instagram ad revenue vs. Facebook ad revenue

Popularly known as the king of social media, Facebook’s ad revenues are in the hundreds of billions. However, Instagram has been catching up. 

In 2020, Instagram’s ad revenues were around half of that of Facebook—both owned by the same parent company, Meta. This rose to 58% and 62.4% in 2021 and 2022, respectively. In 2023, Instagram’s annual ad revenues equate to 70.9% of Facebook’s. This is set to rise to 79.4% in 2024. 

Instagram annual revenue breakdown by ad type

The numbers behind Instagram’s annual revenue 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 feeds. 

Ads on Instagram Stories constitute 26.7% of the platform’s ad revenues in 2023—up from 2022’s 26.4%. However, analysts expect advertisers to increase their ad spend on Instagram Stories in the coming years, with revenue growth expected to outpace that of in-feed ads. 

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