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Instagram to overtake Google and Twitter in US mobile ad revenues by 2017

Facebook-owned Instagram is projected to see its worldwide mobile ad revenues soar to $2.81bn by 2017, eclipsing the $595m it raked in this year, according to the latest forecast published by eMarketer.

It is the first time the analysts have cast their eye over how much advertisers are expected to spend on the social network, with high growth rates being powered by a raft of new products enabling the platform to migrate beyond simple branding to embrace direct response, enhanced measurement and targeting and the ability to buy ads via an API.

If these figures bear out it means that Instagram will account for 10 per cent of Facebook’s global ad revenues by close of the forecast period, with Instagram also overtaking Google and Twitter in terms of US mobile ad revenues.

The US will remain the dominant market for Instagram although its importance will gradually erode, moving from a position where it accounts for 95 per cent of all ad revenue this year to an 85 per cent market share in 2017.

Debra Aho Williamson, eMarketer principal analyst, said: “Now that Instagram is opening up, there is a lot of pent-up demand. The rollout of new features over the next several months means that by the end of 2015, Instagram will have a host of new ad products for advertisers large and small. In particular, Instagram advertisers will be able to use a full slate of Facebook targeting tools, including the popular Custom Audiences feature. That will be a key drawing card.”

eMarketer’s advertising estimates are based on mobile growth only as the site does not currently have a desktop-based ad product.

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