Instagram, owned by Meta Platforms, has evolved tremendously from a simple photo-sharing application to one of the most accessed social media platforms around the globe.
Known as a short video and photo sharing social network, Instagram generated a revenue of $66.9 billion in 2024, marking an increase of 34.34% from the previous year.
The platform has turned out to be one of the biggest sources of income for its parent company, Meta.
To get a complete idea about Instagram’s key revenue sources, future outlook, and other fascinating Instagram statistics, read on further.
Top Picks Instagram Revenue (2025)
- Instagram is expected to generate a revenue of $83.6 billion in 2025, back in 2024, the platform generated $66.9 billion in revenue.
- In 2026, Instagram is expected to contribute 53.1% of Meta’s total Ad revenue.
- Around $37.2 billion was generated by Instagram in 2024 through social commerce, thats more than half of the platform’s revenue that year.
- Cristiano Ronaldo and Lionel Messi are the top two highest-earning Instagram influencers with $3.2 million and $2.5 million estimated earnings through endorsements.
How Does Instagram Make Money?
Instagram earns most of its revenue through advertising and In-app monetization tools. Its huge user base and high engagement rate make it one of Meta’s most profitable platforms.
Instagram earns the majority of its money by showing ads in the feed, stories, reels, and explore page. Brands pay to promote their products, and Instagram uses Meta’s powerful targeting system to show these ads to the target audience.
Apart from advertising, Instagram also earns from its built-in shopping tools, such as product tags, Instagram shops, and In-app checkout.
Creator monetization tools, such as badges during live streams and creator subscriptions, also contribute to Instagram’s total revenue.
To get a detailed overview of Instagram’s revenue sources, read on further.
Instagram Revenue Over the Years
Instagram has experienced extraordinary revenue growth over the past decade. Its success is fueled by expanding mobile ads, in-app shopping, influencer marketing, and a constant rollout of engaging new features.
The platform recorded a revenue of $0.5 billion in 2015 and is projected to reach $83.6 billion in 2025, representing a compound annual growth rate (CAGR) of approximately 66.6% over the decade. This corresponds to a staggering overall increase of 16,620% in just 10 years.
The most significant year-over-year revenue jump occurred between 2023 and 2024, when revenue climbed from $49.8 billion to $66.9 billion, an increase of $17.1 billion in a single year. On average, Instagram’s revenue has been doubling roughly every 1.36 years, highlighting its rapid expansion.
Here is the chart of instagram revenue over the years:
| Year | Revenue | YoY Growth (%) |
|---|---|---|
| 2015 | 0.5 Billion | – |
| 2016 | 1.8 Billion | 260% |
| 2017 | 4.1 Billion | 127.8% |
| 2018 | 10.3 Billion | 151.2% |
| 2019 | 16.2 Billion | 57.3% |
| 2020 | 21.8 Billion | 34.6% |
| 2021 | 32 Billion | 46.8% |
| 2022 | 36.9 Billion | 15.3% |
| 2023 | 49.8 Billion | 34.9% |
| 2024 | 66.9 Billion | 34.3% |
| 2025 | 83.6 Billion | 24.9% |
Instagram Advertising Revenue
In 2025, Instagram is expected to earn $37.13 billion from U.S. Ads, a 24.4% increase from 2024. This means Instagram will make up around 50.3% of Meta’s total U.S. revenue.
Instagram is further projected to earn about $42.52 billion from advertising in 2026. This means Instagram alone will generate around 53.1% of Meta’s entire income that year.
The table below shows Instagram’s Ad revenue contribution to Meta’s total revenue.
| Year | Instagram Ad Revenue | % of Meta’s Ad Revenue |
|---|---|---|
| 2022 | $22 billion | 44.1% |
| 2023 | $25.75 billion | 45.5% |
| 2024 | $32.03 billion | 48.4% |
| 2025 | $37.13 billion | 50.3% |
| 2026 | $42.52 billion | 53.1% |
Instagram In-App Purchase Revenue
The In-App purchase revenue of Instagram is quite small compared to its massive advertising revenue. However, in 2022, Instagram’s In-app revenue was demonstrated to be around $3.6 million.
Based on the in-app revenue generated by Instagram in 2022, the estimated revenue in 2025 is expected to reach $6.25 million.
In Meta’s Q1 2024 earnings, the revenue generated from In-app purchases across all the apps increased by $7.9 million compared to the previous year.
In Q2 2024, Meta’s in-app revenue went up again by $16.9 million, marking an increase of 7%.
The following are some of the contributors to Instagram’s In-app revenue.
- Badges- Badges on Instagram allow users or viewers to showcase their support for the creators during the Instagram live streams. Viewers can purchase badges in the form of hearts ranging from $0.99 to $4.99.
- Creator Subscriptions- Subscriptions allow users to access the exclusive content of the creators by paying subscription fees. Users can watch exclusive stories, reels, and subscriber-only posts.
- Gifts- The gift option on Instagram allows users to send gifts to the creators on the reels. Viewers can purchase stars and send them to creators, based on which creators can earn money.
- Meta Verified- If a user purchases Meta Verified inside the Instagram iOS/Android app, it also contributes to Instagram’s In-app purchase revenue.
Instagram Shopping Revenue
Instagram has become one of the major places where people not only browse content but also discover and research products.
Around 44% of the Instagram users in the United States open the app specifically to check product reviews and recommendations.
Instagram generated an estimated $37.2 billion through social commerce in 2024. This means users directly purchased products through features like shoppable posts, reels, and Instagram checkout.
More than 25 million businesses are using Instagram, ranging from small local shops to major global brands. Also, businesses using product tagging on Instagram can boost their sales up to 37%.
E-commerce Tools on Instagram
Around 83% of Instagram users actively look for new brands or products on Instagram, making it one of the most powerful spaces for product discovery.
This high discovery rate is supported by Instagram’s growing set of E-commerce tools. Below are the key E-commerce tools on Instagram.
- Instagram Shops- Over 1.4 billion people on Instagram take part in shopping by browsing, engaging with brands, or purchasing items.
- Product Tags- These are the tags on the post that highlight which products are being shown. When the users tap on the tag, they can see the product name, price, and “View on Shop” or similar. Around 130 million users tap on product tags each month.
- In-App Checkout- In some countries, Instagram lets users buy products directly inside the app, so they don’t have to visit an external website to finish the purchase. About 29% of Instagram users have purchased through In-app checkout.
- Live Shopping- Instagram live shopping allows brands to showcase products in real time during a live stream, allowing viewers to ask questions and buy items instantly while watching.
- Around 33% of marketers use live shopping on Instagram, and nearly 28% consider it one of the highly effective shopping tools.
Highest-Earning Instagram Influencers
The highest-earning influencers on Instagram belong to different niches, including athletes, creators, and celebrities.
Cristiano Ronaldo and Lionel Messi are the top two highest-earning Instagram influencers with $3.2 million and $2.5 million estimated earnings.
Considering the number of followers, engagement rate, sponsorships, and brand deals, below are the top 10 highest-earning Instagram influencers.
| Influencer | Number of Followers | Estimated Earnings |
|---|---|---|
| Cristiano Ronaldo | 630 million | $3.2 million |
| Leo Messi | 500 million | $2.5 million |
| Selena Gomez | 430 million | $2.5 million |
| Kylie Jenner | 400 million | $2.3 million |
| Dwayne Johnson | 393 million | $2.3 million |
| Ariana Grande | 375 million | $2.2 million |
| Kim Kardashian | 356 million | $2.1 million |
| Beyonce Knowles | 311 million | $1.8 million |
| Khloe Kardashian | 302 million | $1.8 million |
| Justin Bieber | 294 million | $1.7 million |
Source: Influencer Marketing Hub
Future Trends in Instagram’s Revenue Growth
Instagram’s revenue is expected to grow as it is strong in targeted ads, improving its shopping tools, and earning more from short-form videos such as reels.
By 2025, Instagram is projected to become Meta’s biggest source of Ad revenue in the United States.
Reels, Threads, and the explore feature of Instagram together will contribute around 25% of the total ad revenue of Instagram by 2025.
Continuous enhancements to Instagram’s shopping and checkout features will help the platform stand out as a key player in the e-commerce sector.
