Did you know Instagram Will Exceed Facebook’s Ad Spend By 2024 Despite Apple’s App Tracking Measures
The introduction of Apple’s app tracking transparency protocol
threatened to disrupt the delicate balance of the digital ad ecosystem.
Many considered Facebook and Instagram’s business models to be obsolete
because of the fact that this is the sort of thing that could
potentially end up depriving them of data. However, Instagram has
managed to recovery fairly quickly from the sudden change. Research
suggests that it might even surpass Facebook as early as 2024 in terms
of total ad spend.
With all of that having been said and now out
of the way, it is important to note that Instagram’s ad spend is slated
to reach a whopping $70.9 billion in 2024
if the current trend persists. Back in 2017, this number sat at just
around $3.4 billion, indicating a massive explosion that has taken
Instagram to never before seen levels of revenue. Between 2017 and 2021,
ad spend increased from $3.4 billion to $48.3 billion.
Growth slowed between the years of 2021 and 2022 with ad spends going
from $48.3 billion to $51.1 billion, when ATT rocked the industry in no
small measure. In spite of the fact that this is the case, Instagram got
some of its momentum back by posting a $10 billion increase in ad
spends this year. With the risk of operating in a brand new landscape
more or less averted, Instagram is set to break all records in 2024 with
all things having been considered and taken into account.
The
growth rate this year for Instagram sits at around 19.7%, with the
fourth quarter showing a growth rate of 25.8% year over year. The
predictions for next year suggest that brands will spend 16% more on
Instagram in 2024, far higher than might have been the case otherwise.
While this is not quite as impressive of a growth rate as the one for
2023, it still shows that platforms like Instagram are able to navigate
the new normal. The fact that Instagram is surpassing Facebook might be a
sign of the paradigm shifts that are about to occur in the social media
industry this decade.
