There is no doubt that Instagram is an important asset for Facebook, but have you ever wondered how big and lucrative a photo and video sharing platform can be? For starters, it's enough to know that Instagram's revenue from advertising last year was $ 20 billion, which is a quarter of Facebook's total revenue.
Interestingly, Instagram, better known as a photo sharing platform, has more revenue than the YouTube platform, which is the most popular video platform in the world. YouTube grossed $ 15.1 billion last year, $ 5 billion less than Facebook's photo-sharing platform. Of course, there is a fundamental difference between the two platforms.
YouTube, for example, shares its advertising revenue with content producers, while Instagram does not, and only provides part of the cost of equipment to content producers, which never reaches the 5-digit figure ($ 10,000). . Of course, keep in mind that video platforms cost more to stream than photo-based platforms like Instagram.
Facebook has been silent on Instagram revenue and has not released any information on the number of users. The last time the company announced the number of users of its popular social network was about one billion in 2018. However, it can be expected that this popular platform will also have such revenues, because advertising can be found everywhere in this program.
For example, users see ads between stories and in the main feed. Also, with the efforts made by Instagram to facilitate the purchase process from this platform, it has caused large companies to advertise their products on this social network. In any case, all of these numbers show one thing, and that is that Instagram is no longer a side project for Facebook, and the company intends to focus more on improving its profitability in the future.Source