Instagram Explodes! Second Fastest Growing Brand in 2024

According to Stocklytics.com, Instagram is the second fastest growing brand, trailing only chipmaker Nvidia, which boasts an impressive growth rate of 173%. Instagram’s growth rate is 93%, while Facebook ranks third at 79%, highlighting the two meta platforms’ trajectory gains and market resilience.

In 2022, Instagram’s value stood at 33.48 billion dollars. A year later, it stood at 47.4 billion dollars, making it the sixth most valuable media brand worldwide in 2023. This remarkable growth trajectory has propelled the platform to new heights, solidifying its standing in the market and showcasing the significant potential of social media platforms.

The site’s financial analyst, Edith Reads, comments:

Instagram has introduced several innovative features that have resonated deeply with its diverse user base. The integration of augmented reality (AR) filters, enhanced video capabilities, and the expansion of shopping features have transformed Instagram into more than just a social networking site. It has become a multifaceted platform where users can connect, create content, shop, and explore new trends seamlessly.

Stocklytics financial analyst, Edith Reads

Where Does Instagram Get Its Most Revenue?

Instagram’s principal revenue comes from its advertising segment. Businesses and brands pay to display their ads to targeted users on the platform. These ads appear in users’ feeds, stories, and explore pages, allowing businesses to reach a wide audience.

The platform’s advertising revenue accounts for over a quarter of Meta’s cumulative income. Instagram’s financial performance has been robust, with ad revenues reaching $11.3 billion in 2018, followed by $17.9 billion in 2019, and $22 billion in 2020.

In 2021, Instagram continued its impressive financial trajectory, contributing $32.4 billion to Meta’s revenue, accounting for 27% of the total. The platform’s ad revenue surged to $33 billion in 2022 and reached $39 billion in 2023.

Moreover, the application is set to earn over $59.6 billion from its ads in 2024, with in-feed ads contributing a significant portion of those earnings.

Instagram’s consistent increase in advertising revenues stems from its strategic focus on enhancing social commerce capabilities, Meta’s advancements in AI-driven content recommendation and advertising automation, and successfully monetizing Instagram Reels, which has attracted an audience size nearly double that of TikTok’s video platform.

Additionally, Instagram’s ad charge rates are also relatively low compared to other platforms, driving its popularity among popular brands.

Instagram’s Strategic Advancements

Instagram is most relevant to younger audiences. The platform boasts up to 59% of teen users under 15 and about 70% of teens aged 15 to 17. Besides, its monthly user base continues growing, giving advertisers many more possible customers. Instagram boasts two billion monthly active users worldwide as of early 2024, giving Facebook and YouTube much-needed competition. 

Instagram is also working on improving its algorithm, intending to boost the reach of smaller creators. The new algorithm will also replace reposts with original content in recommendations, add labels to reposted content, and link back to the original creator. 

The platform’s developers are also testing a “Lately” story highlight to allow users to save their stories from the past seven days for their followers to view. The full implementation of these features will ideally boost its reach and help retain its already established market.