With global digital ad spend on the rise year after year, it’s no surprise that popular marketing platforms like Facebook and Google have experienced yearly increases in their ad revenues. 

The popular photo-sharing app Instagram is no exception to this trend. Here’s a closer look at Instagram’s annual revenues from ads from 2020 to 2024.

Start selling online now with Shopify

Start your free trial

Instagram annual revenue breakdown by year

According to a recent report, Instagram’s ad revenues are expected to hit $59.6 billion in 2024. Given an estimated 1.4 billion users worldwide, Instagram’s revenue per user averages at around $43, while Facebook’s is estimated at $36.

Instagram’s ad revenues from 2024 represent a 17.9% increase from 2023, when Instagram’s annual revenues from ads totaled $50.6 billion, the first time they exceeded the $50 billion milestone.

→ Click Here to Launch Your Online Business with Shopify

This year’s increase marks a significant acceleration from the previous two years’ total ad revenues. In 2023, Instagram’s ad revenues grew by 16.9%, while 2022 saw revenues rise by just 2.6%, from $42.2 billion in 2021. However, in 2021, Instagram ad revenues registered a surge of 50.2%, from $28.1 billion in 2020. This is also the fastest annual growth rate industry analysts expect from 2020 to 2024. 

From 2020 to 2024, Instagram’s ad revenue is set to increase by a total of $31.5 billion, a growth of more than 100%. The average annual growth rate for this period is 21.9%. 

Instagram ad revenue vs. Facebook ad revenue

Popularly known as the king of social media, Facebook’s ad revenues are in the hundreds of billions. However, Instagram has been catching up. 

In 2020, Instagram’s ad revenues were around half of that of Facebook—both owned by the same parent company, Meta. This rose to 58% and 62.4% in 2021 and 2022, respectively. In 2023, Instagram’s annual ad revenues equate to 70.9% of Facebook’s. This is set to rise to 79.4% in 2024. 

Instagram annual revenue breakdown by ad type

The numbers behind Instagram’s annual revenue also show that the ad type that’s responsible for most of the platform’s revenue is in-feed ads. These are ads that users see as they scroll through their Instagram feeds. 

Ads on Instagram Stories constituted 26.7% of the platform’s ad revenues in 2023—up from 2022’s 26.4%. However, analysts expect advertisers to increase their ad spend on Instagram Stories in the coming years, with revenue growth expected to outpace that of in-feed ads.

Start selling online now with Shopify

Start your free trial

Want to learn more?