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Instagram’s mobile ad revenues to reach $2.81 bn worldwide in 2017

Social media platform Instagram will bring in USD 595 million in mobile ad revenues worldwide in 2015. By 2017, the global mobile ad revenues of the social media platform will reach USD 2.81 billion, according to eMarketer’s forecast. This will account for over 10 per cent of its parent company, Facebook’s, ad revenues.

After launching ads a year and a half ago, Instagram is now looking to further monetise its footprint. With over 300 million active monthly users, Instagram’s initial limited foray into advertising hasn’t slowed down its popularity with users. Its new ad products include call to action buttons, better targeting and the ability to buy ads via an API.

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

The report highlights that throughout the three-year forecast period, Instagram will make the vast majority of its ad dollars in the US, though non-US revenues will comprise a growing share of the pie. eMarketer forecasts that Instagram will have just USD 30 million in ad revenues outside the US this year, or five per cent of the total. Meanwhile, the US will account for 92 per cent of the total in 2016 and 85 per cent in 2017. As of July this year, Instagram advertising is available in only seven international markets: Australia, Brazil, Canada, France, Germany, Japan and the UK.

As Instagram does not currently have a desktop-based ad product, eMarketer’s estimates for Instagram ad revenues are mobile-only. According to the report, Instagram’s ad revenues will make up five per cent of Facebook’s mobile ad revenues this year, and that share will increase to 14 per cent in 2017.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.