Facebook Blushes As Instagram Threatens To Take the Lead in Ad Spend
September 21, 2023
2 min 10 sec read
Meta's Instagram, the undisputed champion of the social media world, is recovering from the Apple ATT iOS data-sharing hiccup faster than the rest. When it comes to the soft digital ad market, Instagram's cruising in the fast lane while everybody else is stuck in the mud.
Who would've thought right? It seems not too long ago, Instagram was something most of us casually viewed after we took care of our daily Facebook food pics and cat memes.
Now it's all about those Reels. You can incorporate your food pics, cat memes, and a whole lot more into those Reels.
According to MediaPost, Instagram is even on track to leave its older sibling, Facebook, in the dust
. Either way, Meta wins, so Zuckerberg can continue business as usual.
But what makes Instagram so special?
To begin with, it knows how to monetize those short-form video rascals called Reels, and, of course, there are those AI targeting tactics that give stuff like content recommendation, asset creation, and consumption levels the kick in the behind they need to combat those ATT issues.
"It's only a matter of time before Instagram surpasses its Meta stablemate Facebook to become the world's largest social media platform by ad revenue," said Alex Brownsell, head of content at the World Advertising Research Center (WARC), when he looked into his magic crystal ball. We already pointed that out, but it's nice to have some backup.
Heck, even in 2022's questionable digital ad market, Instagram managed to snag a 5.8% global ad revenue growth, so even without a crystal ball, you could make a good guess, right?
Here's the cherry on top. The WARC is forecasting 19.7% growth for Instagram in 2023, which means a staggering $61.1 billion. It's like a Hollywood blockbuster in the making, kids.
And for 2024, they're looking at 16% growth, to reach $70.9 billion.
And let's not forget social commerce. Instagram's getting so close to "point of purchase" that soon we'll be able to buy groceries and a new pair of sneakers without even leaving the app. Aren't we excited to be alive?
WARC forecasts that the retail ad spend on Instagram could go from $3.2 billion in 2020 to $9.1 billion in 2024, while business ad spend could reach $10.2 billion around the world in 2024. Now that's a whole lot of bang for the buck (or Meta's bank account).
Let's face the reality here. Instagram is now where all the cool kids hang out. They've got Gen Z and Millennials swiping, liking, and Reeling in the years like there's no tomorrow. In fact, Big Daddy Instagram is reaching 60% of the young crowd compared to the mere 38% for Facebook and TikTok.
For Instagram, it's about those Reels. Meta's push on Reels has successfully driven interaction and advertising like you'd drive a new Ferrari. Those Reels campaigns are reaching double the folks that similar TikTok campaigns reach while doing way better than other Instagram content.
Instagram's got that influencer game on lockdown, with 90% of influencers making it a part of their daily routine.
Meta reaps the rewards either way, so Facebook doesn't need to cry, but TikTok, where are you? If you want to stay in the game, you need to make those ad dollars holler.
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