Aug 8, 2015
Advertising: Instagram will overtake Google and Twitter combined
Aug 8, 2015
In 2017, Instagram's US advertising revenues are set to overtake the combined revenues of Google and Twitter. Worldwide, the social network should see its advertising revenues grow from the $595 million expected this year to $2.81 billion in 2017.
Acquired in 2012 by Facebook for $715 million, Instagram began to feature advertising in the USA in November 2013. The UK (September 2014), Australia (October 2014), Canada (November 2014) and France (March 2015) duly followed. For the time being Instagram accounts for 5% of Facebook's advertising revenues, and should account for 14% in 2017.
The US share of these revenues is set to decline, from the 92% expected in 2016 to 85% in 2017. This will be chiefly due to the strong increase in the number of worldwide subscriptions. In the USA alone, the network posted a 60% increase in 2014, reaching 64.2 million subscribers. At this rate, one third of the US population will have an account in 2019, i.e. 111.6 million people according to Emarketer. In comparison, last year Twitter posted a 12.1% increase, reaching 48.4 million users in the USA.
Instagram isn't alone in profiting from its advertising success: according to the AFP, Instagram's most influential users and prescribers are able to invoice from €1,000 to €3,000 for a day of photographs for a brand. Many of the latter do not hesitate to invite these e-photographers on costly trips, who then serve as a link to reach subscribers.
Copyright © 2024 FashionNetwork.com All rights reserved.