[SMK] Social Media Knowledge


Instagram set to net $600m in mobile ad revenue

According to Aesop the tortoise will always beat the hare in a race. It seems Facebook heeded the ancient Greek philosopher's advice when it came to Instagram advertising.

While its been relatively slow the monetise, Facebook's patience is beginning to pay dividends. Very big dividends.


According to a new report from eMarketer, Instagram is on track to rake in US$595 million in global mobile ad revenue this year.

These figures are more startling considering that Instagram does not have a monetised desktop offering.

Cash cow

The report also predicts Instagram's mobile ad revenue will more than triple to US$2.81 billion by 2017, placing it ahead of Google and Twitter.

This also means Instagram will be bringing in 10% of Facebook's total ad revenue, and 28% of Facebook's ad revenue in the US.

Keep it coming

And this might just be the beginning, as Instagram still offers very basic ad targeting functionality.

With new features for marketers in the works, expect a flurry of Instagram photo and videos ads on the way in the not-too-distant future.

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