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NEWS28 July 2015

Instagram US mobile ad revenue set to overtake Google and Twitter

Financials News North America

US — New analysis from eMarketer has forecast that Instagram’s global mobile ad revenues will hit $2.81bn by 2017, overtaking Google and Twitter in the US.

In its analysis, the market research firm calculates that the photo sharing social network will generate $595m from global mobile ad revenues this year. Instagram ads were launched in the US in September 2013 and in the UK the following year.

EMarketer attributes this rapid growth to high demand for Instagram’s new ad products, which will expand beyond branding to include direct response, the ability to buy ads via an API (application program interface), and enhanced measurement and targeting features.

The expected $2.81bn in revenues for 2017 would account for over 10% of parent company Facebook’s global ad revenues.

“Now that Instagram is opening up, there is a lot of pent-up demand,” said Debra Aho Williamson, principal analyst at eMarketer. “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.”

@RESEARCH LIVE

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