With an estimated advertising audience of nearly 1.6 billion, Instagram is the fourth most popular and used social media platform.
Several marketers use Instagram to run ads, and the revenue from Instagram ads in the U.S. increased by $33.52 billion between 2018 and 2023.
There are many opportunities to advertise on Instagram, and marketers are eyeing the target audience that watches Instagram reels and stories to make the most of engagement on Instagram.
This article features everything you need to know about Instagram Ad Revenue statistics.
Instagram Ad Revenue: Overview (2024)
Before we go into key stats, here is a quick overview of Instagram.
| Launch Date | October 6, 2010 |
| Authors | Mike Krieger, Kevin Systrom, Adam Mosseri |
| Developers | Meta Platforms |
| Operating Systems | iOS, Android, Microsoft Windows, Fire OS |
| Revenue | $60.3 billion |
| Ad Revenue | $50.58 billion |
| Valuation | Over $100 billion |
| Total number of users | Around 1.628 billion |
Instagram Ads General Statistics
Although the organic reach of Instagram is pretty decent, many marketers depend on Instagram to gain sales and exposure.
Below are some general statistics associated with Instagram Ad revenue
- Instagram advertisements can reach 849.3 million users globally.
- 69% of Instagram marketers’ budgets go towards influencer marketing on the platform.
- Businesses hire micro-influencers, who typically have 50,000–100,000 followers, to promote their goods.
- Turkey, Brazil, and Spain have the most potential for Instagram advertising reach.
Turkey has an Instagram reach rate of around 85.9%, and Brazil has a 75% reach rate.
Further, Spain has a 63.2% Instagram reach rate.
- The audience aged 25 to 34 represents the largest Instagram advertising audience.
- Consumers use Instagram 83% of the time to find new goods or services.
- Instagram’s fake bot accounts are thought to cost advertisers in the advertising ecosystem $1.3 billion annually.
- Your average Instagram post will cost you between $100 and $2,085.
- Compared to images, video ads are 3x more engaging.
How Does Instagram Make Money?
Instagram generates revenue through adverts. Through IG Live, users can buy badges and make money. The badges are priced between $0.99 and $4.99.
Additionally, Instagram unveiled a shopping checkout in 2019 that allows platform users to integrate solutions like Shopify, BigCommerce, ChannelAdvisor, CommerceHub, and others. Instagram charges a fixed 5% selling fee for every shipment. The flat charge for packages under $8 is $0.40 cents.
How Much Does Instagram Make A Year From Ads?
According to recent research, Instagram’s ad revenue in the US reached $39.7 billion in 2023. With an estimated 1.6 billion users, Instagram generates an average of $312.11 per user.
Instagram’s ad revenue in 2023 climbed by 19.4% from its ad revenue in 2022, which came to $33.3 billion annually.
Even though the 2023 growth is considerable, overall ad income from the prior year actually decreased.
Additionally, it hasn’t grown this slowly in at least four years. For example, Instagram’s ad income increased by up to 25.7% in 2022 from $26.46 billion in 2021.
According to analysts, Instagram is now growing its income faster than Facebook. In reality, Instagram’s ad sales first surpassed those of Facebook in 2021. Ad sales are anticipated to reach 60.9% in 2023.
Here is a table showing Instagram’s ad revenue in the U.S.:
| Year | U.S. Instagram Ad Revenue |
| 2023 | $39.7 billion |
| 2022 | $33.25 billion |
| 2021 | $26.46 billion |
| 2020 | $17.4 billion |
| 2019 | $12.4 billion |
| 2018 | $6.18 billion |
Source: Statista
- As per the latest predictions, Instagram ads will generate revenue of $59.61 billion in 2024.
Instagram’s global ads revenue was around $50.58 billion in 2023.
The following table shows the Instagram’s Global Advertisement revenue from 2020 to 2024:
| Year | Instagram Ad Revenue |
| 2024 | $59.61 billion |
| 2023 | $50.58 billion |
| 2022 | $43.28 billion |
| 2021 | $42.18 billion |
| 2020 | $28.08 billion |
Source: eMarketer
- Instagram Stories ads revenue reached a revenue of $20.03 billion in 2023.
The revenue of Instagram Stories ads has grown by nearly 189% between 2020 and 2023.
Here is a table showing the Instagram Stories Ads revenue over the years:
| Year | Instagram Stories Revenue |
| 2023 | $20.03 billion |
| 2022 | $15.95 billion |
| 2021 | $11.43 billion |
| 2020 | $6.9 billion |
| 2019 | $4.32 billion |
Source: Statista
Instagram Annual Revenue Breakdown By Ad Type
The figures behind Instagram’s annual earnings also demonstrate that in-feed adverts account for the majority of the platform’s income. Users view these advertisements as they peruse their Instagram feeds.
In contrast, Instagram Stories advertisements accounted for 26.7% of all ad revenues in 2023, up from 26.4% in 2022.
Analysts anticipate an increase in advertising spending on Instagram Stories over the next few years, with revenue growth outpacing that of in-feed advertisements.
Instagram Ad Audience Demography
As I said earlier, Instagram has around 1.3 billion audiences. If you are planning to promote your own brand, then it is essential to know your audience.
Let’s have a look at the essential facts about Instagram Ad audience that will help you in your marketing strategy.
- Over 25.7% of internet users are Instagram advertisement audiences.
- With around 362.9 million people, India has the most Instagram Ad audience.
- The United States comes next with around 169.65 million active Instagram ad audiences.
Let’s have a look at the data showing the top 10 countries with the most Instagram Ad audiences as of 2024.
| Country | Instagram Ad Audience |
| India | 362.9 million |
| The United States | 169.65 million |
| Brazil | 134.6 million |
| Indonesia | 100.9 million |
| Turkey | 57.1 million |
| Japan | 55.45 million |
| Mexico | 44.85 million |
| The United Kingdom | 33.1 million |
| Germany | 30.35 million |
| Argentina | 27.85 million |
Source: Statista
- With 251.4 million consumers, Southern Asia has seen the most Instagram Ad audience.
- The North American region has over 159.3 million Instagram ad audiences.
Here is a table showing the Instagram Ad audience by region:
| Region | Instagram Ad Audience |
| Southern Asia | 251.4 million |
| Southern America | 192 million |
| Northern America | 159.3 million |
| Southeastern Asia | 155 million |
| Western Asia | 103.1 million |
| Eastern Asia | 81.8 million |
| Western Europe | 70.1 million |
| Southern Europe | 66.1 million |
| Central America | 47.8 million |
| Northern Europe | 46.6 million |
| Eastern Europe | 39.5 million |
| Northern Africa | 37 million |
| Central Asia | 17.9 million |
| Oceania | 14.3 million |
| Western Africa | 11.7 million |
| Eastern Africa | 8.5 million |
| Caribbean | 8 million |
| Southern Africa | 6.2 million |
| Middle Africa | 1.8 million |
Source: Ecwid
- When talking about the gender ratio, 51.8% of Instagram Ad users are male, while the remaining 48.2% are female.
- According to the latest data, 30.8% of the users are between 18 and 24 years old.
| Age Group | Number of Instagram Ad Audiences | Percentage of Instagram Ad Audience |
| 13 to 17 years | 165 million | 8% |
| 18 to 24 years | 407.9 million | 30.8% |
| 25 to 34 years | 469 million | 30.3% |
| 35 to 44 years | 210.1 million | 15.7% |
| 45 to 54 years | 113 million | 8.4% |
| 55 to 64 years | 56.9 million | 4.3% |
| Above 65 years | 33.8 million | 2.5% |
- 15.7% of Instagram ad users are between 35 and 44 years old.
Here is a table that shows the Instagram Ad audience by age and gender:
| Age Groups | Female Audience | Male Audience |
| 13 to 17 years | 3.7% | 4.3% |
| 18 to 24 years | 13.9% | 16.9% |
| 25 to 34 years | 13.9% | 16.4% |
| 35 to 44 years | 8.1% | 7.6% |
| 45 to 54 years | 4.7% | 3.7% |
| 55 to 64 years | 2.6% | 1.7% |
| Above 65 years | 1.5% | 1.1% |
Source: Statista
Instagram Advertising Reach Rate By Country
- Instagram has a global Instagram Advertising rate of 21.1%.
Brunei, with 74.1%, had the highest Instagram ad reach in 2023.
Here is a table with the countries with the highest Instagram audience reach:
| Country | Instagram audience reach |
| Brunei | 74.1% |
| Kazakhstan | 72.5% |
| Bahrain | 72% |
| Turkey | 71.1% |
| Cyprus | 66.8% |
| Chile | 66.3% |
| Montenegro | 66.2% |
| Cayman Islands | 65.6% |
| Argentina | 63.9% |
| Brazil | 63.6% |
| Sweden | 63.5% |
| UAE | 60.3% |
| Norway | 58.7% |
| Portugal | 58.1% |
Source: Statista
More Statistics Read:
Conclusion: Instagram Is Expected To Generate Over $59.61 Billion In Ad Revenue In 2024
Digital media usage has seen explosive growth in the past decade. Everyone, from consumers to marketers, is anticipated to utilize social media for various purposes in 2024.
Instagram is a successful social media platform with a large number of users. The engaging content on Instagram has attracted advertisers to run their ad campaigns more efficiently.
The reach of an Instagram post is around 8% compared to a Facebook post, which has 6%. In addition, the high penetration rate of instagram facilitates better-performing ad campaigns.
These were the statistics revolving around Instagram ad revenue and reach.
FAQs
Instagram earns around $43 per user.
Instagram will generate 49.9% of Meta’s US revenues by 2025, and it is anticipated that it will overtake Facebook as Meta’s top revenue generator.
Micro-influencers earn around $100–$500 per post, Mid-tier influencers can earn around $500–$5,000 per post, and Macro influencers can earn $5,000–$10,000 per post on Instagram.
Instagram often pays $5 to $10 for every 1000 views. However, it might range from $0.50 to $20 for every 1,000 views.
Cristiano Ronaldo generates the most money from Instagram, as per GoBankingRates. He has 625 million followers as of right now.
