Instagram’s global ad revenue to hit $600m as user base reaches 400m

Image sharing platform Instagram is projected to raise $600m in global advertising revenues this year on the back of a rapidly expanding user base which recently has notched up its 400 millionth user.

Figures compiled by eMarketer show that the Facebook-owned service will continue to enjoy rapid growth, powering ad revenues to $1.48bn in 2016 and $2.81bn by 2017.

Instagram, which has no desktop based product, is benefitting from the global mobile boom and will account for 5 per cent of its social media parent’s entire worldwide mobile ad revenue this year – rising to 14 per cent by 2017.

This importance will be even more pronounced within the US where the comparative ratios are calculated as 10.7 per cent and 28 per cent respectively, reflecting the continued importance of its home market.

To put this in perspective eMarketer forecasts that Instagram will raise a mere $30m in ad revenues outside the US this year, just 5 per cent of its total haul, with the US accounting for a dominant though diminishing share, falling from 92 per cent in 2016 to 85 per cent in 2017.

Moreover Instagram is expected to enjoy higher net mobile display ad revenues than both Google and Twitter by 2017.

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