Instagram is on track to contribute more than 50 percent of Meta Platforms’ advertising revenue in the United States next year, according to research from Emarketer. The digital platform’s growing focus on monetizing features like Reels is a key driver of this anticipated growth.
Short-form video content, such as Instagram Reels, competes directly with ByteDance’s TikTok and YouTube Shorts. As these formats capture users’ attention, marketers are increasingly turning to them, bolstering Instagram’s revenue. Meta’s decision to integrate more ads into Reels aligns with its broader strategy to maximize revenue from this format, Reuters news report said.
Should the U.S. enforce a TikTok ban in 2025, platforms like Instagram and YouTube Shorts stand to gain significant ad revenue. “Instagram could capture over one-fifth of reallocated TikTok ad dollars in the U.S.,” noted Jasmine Enberg, principal analyst at Emarketer.
In 2024, Instagram’s ad revenue was primarily driven by Feed (53.7 percent) and Stories (24.6 percent).
By 2025, the combined revenue share from Instagram Explore, Reels, and Threads is projected to rise to 9.6 percent.
Users now spend nearly two-thirds of their Instagram time watching videos, positioning Instagram as a video-first platform.
With an increasingly video-focused audience and potential changes in the competitive landscape, Instagram is poised for substantial growth in the U.S. advertising market.