Instagram brought more than $20 billion in ad revenue last year, which is more than a quarter of Facebook’s 2019 total sales, Bloomberg reports.
The Instagram team has been doing a great job incorporating ads on to the platform. Users can now see advertisements in-between Stories, within the feed, and on the Explore tab.
This news comes as a reply to Google’s announcement that Youtube made $15 billion in ad revenue last year, which is about 10 percent of Google’s overall earnings. Instagram doesn’t share any of the profit with creators, unlike Youtube, but it does give out some money to IGTV creators to cover creators’ equipment and shoots. These costs don’t even come close to Youtube’s payout to creators, which according to Alphabet CFO Ruth Porat, reaches to about $8.5 billion.
Facebook has been focusing more to get Instagram to be a moneymaker. Brands can now sell items directly from the app and influencers have been given access to a Facebook product devised to help coordinate brand deals. Instagram is also looking to have a more substantial part in influencers’ content deals.
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