Instagram’sadvertising revenue surged to $20 billion in 2019, according to a report published by Bloomberg. It’s a serious achievement that Facebook earns such a high sum on Instagram, which it buys in an income-free way. Because Facebook generated a total of $70.7 billion in revenue in 2019, almost all of which comes from advertising.
Yesterday we shared with you the revenue that YouTube generated from ads in 2019. The latest figures show that Instagram’s revenues even exceeded YouTube’s revenue from the ad. As you can see in our news yesterday, YouTube’s revenue from advertising was $15 billion, which is a pretty good number. But the fact that a platform with a“photo sharing”function like Instagram generates $20 billion in revenue from ads is a real success. Let’s underline that this success belongs to Facebook, even though we have repeatedly criticized it.
Facebook spent $1 billion to buy Instagram in 2012, but is now making a significant profit. In 2018, Instagram is estimated to be worth more than $100 billion, and by 2020 it will be much more valuable than that.
The app was founded by Kevin Systrom and Mike Krieger, and while Facebook worked to integrate the platform into other products, founding members left the company in 2018. Adam Mosseri was subsequently appointed instagram’s new president.