How Much Is Instagram Worth in 2022? Here’s the Latest Data

Last Updated: July 25, 2022
How much is Instagram worth? Let’s study the data and find out.
How Much Is Instagram Worth
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Quick Answer 🔍

How much is Instagram worth in 2022?

Instagram is estimated to be worth over $100 billion.

How much is Instagram worth in 2022?

Instagram has become the center of digital marketing and advertising and managed to raise its revenue to $24 billion in 2020 compared to $17.7 billion in 2019.

Instagram is proving to be the most important platform for social media marketing without any doubt.

A survey found that 69 percent of marketers in the US are spending most of their budget on Influencer marketing in the Instagram platform in 2020.

Instagram raised almost $20 billion in revenue from advertising during 2019.

According to the research, 72 percent of teenagers are Instagram users in which about 70 percent or more think that Instagram is the best way for various brands to reach them.

Around 89 percent of Instagram users are Non-Americans. Interestingly, about 70 percent of people check Instagram to learn about new products and services.

Instagram has shown a 209 percent year-over-year growth during the same quarter, where Facebook received a 17 percent negative growth.

We shall dig deep and find out just how much Instagram is worth in 2022, and more revenue and marketing-related statistics in this article.

How Much Is Instagram Worth? Key Stats

  • Instagram is worth 100 times what Facebook paid for it.
  • Facebook paid $1 billion for Instagram in 2012
  • Instagram is estimated to be worth over $100 billion in 2022
  • More than half of Facebook’s ad revenue comes from Instagram.
  • 1.393 billion monthly active users are on Instagram
  • 32% of Instagram users are aged between 25 and 34
  • 78% of marketers think that Instagram posts have more influence on marketing 
  • More than 50% of Instagram users are Females, which can boost the marketing
  • Instagram generated $17.4 billion in ad revenues in the US
  • 89% of marketers are using Influencer marketing on Instagram
  • About 81 percent of Instagram followers use the platform to learn more about various products, brands, and services.
  • 17 times high engagement rates achieved by Instagram compared to Facebook posts

How Much Is Instagram Worth in 2022?

Instagram is estimated to be worth more than $100 billion in 2022. Let’s find out the key factors that make Instagram worth such a lot of money.

1. Instagram Is Worth 100 Times What Facebook Paid for It.

Instagram was acquired by Facebook after 2 years of launching. Facebook bought the photo-sharing platform for $1 billion in 2012, which was considered an expensive acquisition at the time.

But do you know how much profit Facebook made from Instagram? 

A survey conducted by Bloomberg in 2018 stated that Instagram would have been a $100 billion enterprise if it was a stand-alone business.

2. More than Half of Facebook’s Ad Revenue Comes from Instagram 

According to the most recent statistics, Instagram contributes 52.6 percent (almost more than half) of Facebook’s ad revenue.

Ecommerce and retail ads, video ads, etc., are the most in-demand advertisements that use both social media platforms. 

image 1

According to Emarketer, Instagram growth is expected at a rate of 52 percent during 2021 and can exceed 60 percent by 2023.

3. 1.2 Billion Monthly Active Users Are on Instagram

As per the statistics of the third quarter of 2021, Instagram generated $8.3 billion in revenue. Instagram made $24 billion in revenue during 2020 and $17.7 billion in 2019.

YearRevenue
2015$0.5 billion
2016$1.8 billion
2017$4.1 billion
2018$10.3 billion
2019$17.7 billion
2020$24 billion

4. 32% of Instagram Users Are Aged Between 25 and 34

The major reason for Instagram’s growth is its average user age. According to age demographics, the majority of Instagram users are aged between 25-34.

It is followed by people in the age group 18-24 that covers 31 percent of the subscribers. These statistics prove that more than two-thirds of total Instagram users are under 34 years which attracts marketers.

Especially the e-commerce and online sales and marketing sector believes that Instagram is the gateway to reach millions of their young customers.

They are using several unique marketing techniques such as Influencer marketing, giveaways, shoutouts, etc., to gain maximum sales.

5. 78% of Marketers Think that Instagram Posts Have More Influence on Marketing 

Almost 78 percent of marketers think that Instagram posts have more influence on marketing compared to other social media.

They find Instagram handy due to the ease of posting daily stories, applying custom filters, making creative videos and posters, reaching customers directly without any third-party intervention for regular feedback, etc.

image 4

6. More than 50% of Instagram Users Are Females, Which Can Boost the Marketing

Based on the gender demographics, Women are the leading users of Instagram compared to Men.

Instagram likes stats show that an average female Instagram user gets five or more likes than Male users.

The average likes count for Women on Instagram was 578, and the same for Male users was 117. Similarly, posts from Women get more comments, shares, and reposts compared to the posts from Men.

All these stats point out that the Marketers should consider focusing more on Instagram, especially clothing, ornaments, cosmetics, footwear, etc.

7. Instagram Generated $17.4 Billion in Ad Revenues in The Us

At one point in time, TV, magazines, and newspapers were the major platforms for advertisements to reach people.

The digital era has witnessed a mass shift of marketers from these primitive platforms to trending social media.

Among that, Facebook and Instagram are more prominent. According to stats, the annual ads revenue of Instagram is still increasing.

The 2020 revenue statistics show that Instagram generated $17.4 billion in ad revenues in the US.

Statista predicts that the ad revenue of Instagram, from the US alone, is expected to reach $40 billion by the end of 2023. 

Graphical Representation of Instagram Advertising Revenues in The United States 2018 – 2023

8. 89% of Marketers Are Using Influencer Marketing on Instagram

Instagram is considered the most sought-after social media marketing platform in 2021, followed by YouTube and Facebook.

Snapchat is the least preferred marketing platform due to its limitations in setting up various marketing campaigns.

Even though Snapchat introduced the stories function, it became a success while Instagram added it to their platform.

Currently, there are almost double the Snapchat Stories in Instagram from daily users.

image 7

9. About 81 Percent of Instagram Followers Use the Platform to Learn More About Various Products, Brands, and Services.

More than 70 percent of U.S. companies have invested in Instagram marketing, according to the statistics.

Around 91 percent of luxury brands collaborate with Influencers to advertise their products.

Sports Clothing comes second with 84 percent, and 83 percent of Beauty brands come third on the list.

10. 17 Times High Engagement Rates Achieved by Instagram Compared to Facebook Posts

A 2021 study shows more than 200 million business profiles active on Instagram, where 500 million users are active every day.

Interestingly 60 percent of brands on Instagram use the same filter for every post they add on the platform.

About 80 percent of Instagram user accounts follow a brand or business, and about 200 million users visit a business on Instagram every day.

Around 90 percent of users follow at least one business on Instagram.

Sources

eMarketerDigital Marketing MagazineStartup Bonsai
Neal SchafferHootsuiteBusinessofApps

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Written by Jason Wise

Hi! I’m Jason. I tend to gravitate towards business and technology topics, with a deep interest in social media, privacy and crypto. I enjoy testing and reviewing products, so you’ll see a lot of that from me here on EarthWeb.