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SOCIAL MEDIA

Instagram’s global advertising revenue likely to outdo rivals in 2024

By our News Team | 2023

The social media platform’s ad revenue is up 25.8% year-on-year and is forecast to total US$71-billion for 2024.

Instagram, one of the many social media platforms impacted by the global dip in digital advertising spending, is making a stronger recovery than its competitors.

 

Warc Media, the international research and insights company, forecasts that Instagram’s advertising revenue will reach US$71-billion in 2024, driven by parent company Meta’s innovation with AI that will assist content recommendation and advertising automation processes.

Social Media

Photo by Souvik Banerjee on Unsplash

There is also likely to be improved monetisation of Reels, Instagram’s short-form video product.

 

“The recovery of Meta’s ad business in 2023 has been one of the most notable media industry stories of the year,” says Alex Brownsell, Head of Content at Warc Media.

 

“Twelve months ago, commentators were warning of a ‘reckoning’ for Big Tech, with platforms like Instagram hurting from … Apple’s ATT policy (the company’s tougher user privacy framework) alongside a broader slowdown in digital ad investment.

 

Innovations are making a big difference

 

“What a difference a year makes. Buoyed by innovations in AI targeting helping it to offset the impact of ATT and improved monetisation of Reels, it is only a matter of time before Instagram surpasses its Meta stable mate Facebook to become the world’s largest social media platform by ad revenue,” Brownsell believes.

 

Warc forecasts that Instagram will post quarterly advertising revenues in Q4 2023 of $17.7-billion, up 25.8% year-on-year, and reach a total of $71-billion in revenue for the full 2024 year.

 

The company says the growing popularity of social commerce is moving Instagram closer to the point of purchase. The global retail category spend on Instagram will rise from a relatively low $3.2-billion in 2020, to almost three times that (a forecasted $9.1-billion) in 2024. 

 

Warc’s report emphasises that Reels is key, as campaigns on Reels reach nearly twice the audience as those on TikTok. Nearly a third (30.4%) of consumers turn to Instagram when searching for brands, Warc says.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.