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 $39.7 billion in 2023. Given an estimated 127.2 million users there, Instagram’s revenue per user averages at around $312.11.

Instagram’s ad revenues from 2023 represent a 19.4% increase from 2022, when Instagram’s annual revenues from ads totaled $33.3 billion. 

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 four years. For instance, in 2022, Instagram’s ad revenues grew by as much as 25.7%, from $26.46 billion in 2021. The previous year registered an increase of 52.1%, from $17.4 billion in 2020. This was also the fastest annual growth rate from 2019 to 2023, and followed a 40.3% annual increase from 2019.

From 2019 to 2023, Instagram’s ad revenue is set to increase by $27.3 billion, a whopping 220.2% increase in just four years. The average annual growth rate is forecast at 34.4%. 

Analysts say Instagram’s revenue growth is currently outpacing that of Facebook’s. In fact, Instagram’s ad revenues overtook Facebook’s for the first time in 2021. At 52.6%, this is expected to continue rising and increase to 60.9% in 2023.

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 feed. 

On the other hand, ads on Instagram Stories constitute 26.7% of Instagram’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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