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Will Instagram Surpass Facebook as the Biggest Revenue Source?

Will Instagram Surpass Facebook as the Biggest Revenue Source?

In a very short time, Instagram galloping into the marketplace is ready to surpass the Facebook main app in terms of revenue generation through ads. Yes! This forecast is going to be true in the upcoming course of time. Everyone knows that Instagram is acquired by Facebook, and owing to this reason it is getting an upper hand in terms of business and revenue generation. In a very short time, Instagram has become a very prosperous source of revenue for Facebook. Only Instagram generated twenty percent of the company's revenue the previous year, and the current year 2020 is going to be more productive.

How Instagram helps Tech Brands to prosper?

Facebook has worked a lot in continuous improvement of story ads strongly weighted along with Instagram. Some significant characteristics of Instagram- Such a huge user base, and their interest and credibility to use this popular imaging platform made it possible for all tech giants to find it a source of long term revenue generation.

Instagram Users are seeking Brands

Facebook connects friends and acquaintances. However, the engagement behavior of Insta users is similar, but they are also allowed to follow people and things of their interests including companies and brands.

The research data based on American users reveal that around thirty-four percent of users claim that they follow companies and interests of their choice. And this percentage is just double that of Facebook. Other than this, there are some countries where the percentage of Instagram users following brands is even more than 35% too. ( Denmark-42%).

User Engagement

Instagram has currently more than one billion monthly users. Stories' product of Instagram attracts more than 500 million users per day. Apart from this, the average time spend per user is in a continuous increasing phase. The user base of Instagram is not as large as facebook, neither the average spend time for the same is. Trends still favor Instagram. As per the estimate provided by an eMarketer, users of Instagram in the US will spend around 28 minutes every day. And the daily average of per-user engagement of facebook will reduce to 37 minutes a day.

Space for Growing demand for Advertisement

Instagram needs driving more advertisers to the platform in order to reach its advertising potential. At present, Facebook has more than seven million active advertisers on the platform. However, after the year 2017, there was no official declaration of a number of advertisers on Instagram, but estimation says that it is around three million.

The integration of ad inventory in the app by facebook has raised the active advisers of Instagram. Placing ads in both stories and feeds has become very easy here. Also, it results in an increasing number of advertisers.

Conclusion:

Seeing a continuous growth in demand, Instagram needs to figure out CPC and CTR climb. And if there will be a continuous increase in trends, then there are chances that after come time the Instagram app will become the top source of revenue for Facebook.

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