Instagram’s share of Meta’s U.S. advertising revenue will exceed 50% for the first time in 2025, marking a sevenfold increase from its 7.7% contribution a decade ago, according to new research from Emarketer.

The platform is projected to generate $32.03 billion in U.S. ad revenue in 2025, representing a 24.4% increase from 2024 and accounting for 50.3% of Meta’s total U.S. ad revenue. This growth follows a substantial expansion of Instagram’s user base, which has increased 142% since 2015, reaching 148.73 million U.S. users.

Image credit: Emarketer

Instagram’s revenue per user surpasses both its parent company’s flagship platform and its main competitor, earning $223 per U.S. user compared to Facebook’s $191 and TikTok’s $109. The platform’s financial performance is driven by video content, with users spending approximately two-thirds of their Instagram time watching videos.

In terms of revenue distribution across features, Feed advertisements represent 53.7% of Instagram’s total ad revenue in 2024, while Stories account for 24.6%. These proportions are expected to decrease as revenue from Instagram Explore, Reels, and potentially Threads grows to a combined 9.6% in 2025.

“As other social platforms flood their services with more ad placements, Meta is focused on making its ads more efficient, primarily through AI,” Jasmine Enberg, principal analyst at Emarketer, said in a press release. “Reels has been a major driver of Instagram’s growth, as social media usage and advertising has become more video-driven.”

Image credit: Emarketer

The potential U.S. TikTok ban could further boost Instagram’s revenue. Emarketer predicts Instagram could capture over one-fifth of reallocated TikTok ad spending if the ban takes effect. TikTok currently has 112.40 million monthly U.S. users and generates $12.34 billion in ad revenues.

Regarding Threads, Enberg suggests Meta may introduce advertising on the platform in 2025, though the rollout is expected to be gradual to maintain user engagement. The analyst notes that Threads is unlikely to contribute significantly to Meta’s ad revenue in 2025.