Facebook’s decision to integrate Instagram into its ad system has helped boost revenues. Last year, the company was on track to bring in more than $1.85 billion in ad revenues worldwide. Facebook doesn’t break out Instagram’s revenues in its quarterly results, but it has high hopes for the company. In September 2016, it announced Instagram had over 500,000 advertisers, more than doubling its ad base in six months. The top five countries seeing advertiser adoption were the US, Brazil, the UK, Australia and Canada, Instagram said. The growth to 500,000 advertisers “is indicative of the different types of businesses across all different categories that are embracing the platform and seeing value for both brand building as well as performance advertising,” said Jim Squires, director of market operations for Instagram.
In Q1 2016, 63% of US ad agency professionals surveyed by Strata said they planned to use Instagram for client campaigns, up from 34% in the same quarter in 2015 (before advertising was widely available). The 2016 figure was nearly as high as that for YouTube (67%) and higher than the percentage that planned to use Twitter (56%).
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Jay & Julia Taylor own and operate Caney Creek Studio. Caney Creek Studio is a video production, digital marketing, and social media management agency.