By Zion Rufus
Instagram, the popular social media platform, is on track to achieve staggering advertising revenue of $71 billion by 2024, thanks to a combination of innovative AI targeting and the effective monetization of Reels.
This remarkable forecast comes from WARC Media, highlighting Instagram’s remarkable resurgence after challenges posed by Apple’s App Tracking Transparency (ATT) policy in 2021.
With a global consumer base, Instagram has become the go-to platform for brand discovery, with approximately 30.4% of consumers relying on it for their brand searches.
As a result, the retail sector is gearing up to invest a substantial $9.1 billion in advertising on the platform in 2024, as social commerce gains momentum, bringing Instagram closer to the point of purchase.
The platform’s recovery, following the introduction of ATT in 2021, has been a standout story in the media industry, with Instagram emerging stronger than its social media peers.
WARC Media attributes this resurgence to Meta, Instagram’s parent company, leveraging AI for content recommendation and advertising automation, along with enhancing the monetization of Reels, its short-form video feature.
“What a difference a year makes,” said Alex Brownsell, Head of Content at WARC Media.
“Buoyed by innovations in AI targeting helping it to offset the impact of ATT and improved monetization of Reels, it is only a matter of time before Instagram surpasses its Meta stablemate Facebook to become the world’s largest social media platform by ad revenue.”
Meanwhile, the exponential growth in short-form video content on Reels has been pivotal to Instagram’s success. Campaigns on Reels have been found to reach nearly twice the audience compared to those on TikTok.
According to data from Emplifi, Reels generated 55% more interactions than single-image posts and 29% more interactions than standard video posts on Instagram.
Instagram’s global monthly advertising reach has remained stable at 1.3 billion users, outpacing TikTok, according to Kepios. Its push into Reels has further cemented its appeal among Gen Z and Millennials, reaching 60% of younger audiences, ahead of TikTok and Facebook.
Instagram’s influence in the world of influencers is also undeniable, with 90% of influencers choosing it as their preferred platform, followed by TikTok at 63%. In addition, brands are increasingly partnering with creators on Instagram to reach niche audiences and create authentic connections with communities.
