Instagram’s mobile ad revenues are set to reach $2.81bn by 2017, overtaking Google and Twitter’s mobile revenues with a little help from parent company Facebook, according to new research.
eMarketer’s report, titled “Instagram Advertising: What Marketers Need to Know” forecasts that Instagram will make $595 million in global mobile ad revenue this year.
By 2017, the Facebook-owned photo- and video-sharing app’s global mobile ad revenues will reach $2.81 billion, about 10 percent of Facebook’s global ad revenues. Instagram is also on track to pass Google and Twitter in US mobile display ad revenues by that year.
“Now that Instagram is opening up, there is a lot of pent-up demand,” says eMarketer analyst Debra Aho Williamson.
“The rollout of new features over the next several months means that by the end of 2015, Instagram will have a host of new ad products for advertisers large and small. In particular, Instagram advertisers will be able to use a full slate of Facebook targeting tools, including the popular Custom Audiences feature. That will be a key drawing card.”
In the US alone, Instagram’s monthly user base grew to 64.2 million people by the end of last year. eMarketer projects that by 2019 more than one-third of America’s population, or about 111.6 million consumers, will be Instagrammers.