In a recent motion filed by Meta to dismiss the FTC’s monopoly claims, the company revealed surprising details about Instagram’s advertising revenue, demonstrating its dominance over even YouTube – Google’s video-sharing behemoth.
The Numbers Speak for Themselves
- In 2021 alone, Instagram raked in a staggering $32.4 billion in advertising revenue, surpassing YouTube’s $28.8 billion for the same year.
- This trend is not new; Instagram has consistently outperformed YouTube in terms of advertising revenue for years.
- In 2020 and 2019, Instagram’s ad revenue stood at $22 billion and $17.9 billion, respectively, while YouTube’s figures were $19.7 billion and $15.1 billion.
Instagram’s Advertising Model
One of the key factors contributing to Instagram’s advertising success is its favorable revenue-sharing model compared to YouTube:
- YouTube allocates 55% of its advertising revenue to content creators who upload videos.
- Instagram, on the other hand, retains a significantly larger portion of its advertising revenue.
Instagram’s Growing Importance for Meta
The revealed figures highlight Instagram’s increasing significance within Meta’s operations:
- In 2020, Instagram accounted for 26% of Meta’s total revenue.
- By the first half of 2022, this share had grown to nearly 30%.
As Meta seeks to maintain its dominance in the digital advertising landscape, Instagram’s strong performance positions it as a critical component of the company’s future growth strategy.
