Instagram, a pivotal app within Meta’s portfolio, proved its colossal influence in 2021, boasting an impressive $32.4 billion in ad revenue, equating to 27% of Meta’s total earnings.
This revelation, stemming from a recent court filing, underscores Instagram’s pivotal role within Meta’s financial landscape.
To put this in perspective, Instagram’s ad revenue surpassed that of Google’s YouTube, which generated $28.8 billion in ad earnings during the same period. Unlike YouTube, which allocates 55% of ad revenue to content creators, Instagram operates on a significantly lower payout model, relying heavily on user-generated content.
These figures emerged from a court filing by Meta, aiming to quash a federal antitrust lawsuit, showcasing the rapid ascent of Instagram under Meta’s stewardship.
Acquired for $1 billion in 2012, Instagram has burgeoned from a revenue-free startup to a powerhouse, overseen by former Facebook executive Adam Mosseri.
Considering the exponential growth trajectory, with Instagram’s revenue climbing from $11.3 billion in 2018 to $32.4 billion in 2021, projections suggest Instagram could be valued comparably to YouTube, potentially in the ballpark of $400 billion. Applying Instagram’s revenue share to Meta’s current market capitalization of $1.34 trillion yields a speculative value of $440 billion.
#MaltaDaily