Instagram’s influence continues to expand, according to eMarketer’s first forecast of how much advertisers will spend on the social network. The platform is expected to bring in $595 million in mobile ad revenues globally this year, and by 2017, that number is expected skyrocket to $2.81 billion.
The forecast will be featured in a soon-to-be-released eMarketer report, “Instagram Advertising: What Marketers Need to Know.” The study features eMarketer’s forecast of Instagram revenues, as well as an analysis of Instagram’s user base and its new ad products, including best practices for getting the most out of them. “Now that Instagram is opening up, there’s 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,” said Debra Aho Williamson, eMarketer’s principal analyst, in a statement.
Globally, Instagram’s ad revenues will make up 5 percent of Facebook’s mobile ad revenues this year, and that share will increase to 14 percent in 2017, the Internet market research firm forecasts.
The number of people using Instagram is equally impressive. Its U.S. user base soared nearly 60 percent in 2014, to 642 million people, eMarketer estimated. By 2019, more than one-third of the country’s population is expected to use the social network.
By 2017 in the U.S., Instagram is expected to have higher net mobile-display ad revenues than both Google and Twitter. Last year, Instagram surpassed Twitter to become the second-largest social network in the U.S., after Facebook.
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