fbpx

Instagram Approaches the 10 Year Mark with Stunt in Growth

author image Written by: Nicole McCormick           Categories - In The News

Instagram User Growth Drops While Ad Revenues Increase

Building an active user count of over 1 billion people in just 10 years, Instagram is often hailed as not only a cultural phenomenon, but a platform that defined and revolutionized social media over the past decade. But you wouldn’t know this based on the platform’s recent stunt in growth at the end of 2019. According to a report from market research company eMarketer, Instagram’s user growth only grew by a mere 6.7 percent in 2019. While this may not sound all that concerning, what makes the data surprising is that the platform’s growth levels have dropped to a single digit percentage for the first time since Instagram was founded in 2010. In comparison, Instagram’s growth in 2018 was reported to be 10.1%, and eMarketer estimates that Instagram will continue to grow even slower than the platform had previously projected. Source: eMarketer “Growth will be at 4.5% in 2020, revised down from 5.4%, and in 2021, it will be 3.2% instead of 4.1%,” said the report.

Why This Is Happening

So, why the sudden decline in growth? One of the main factors according to eMarketer is increased competition from platforms like Snapchat and TikTok, along with older age groups’ lack of desire to join Instagram.  In fact, the one area where Instagram is experiencing larger than expected gains in the U.S is users that are aged 25 to 34. But even still, this growth is not expected to increase much in the next few years.

What Does This Mean for Advertisers?

Fortunately for advertisers, this likely won’t have much of an impact on ad revenue, as Instagram is still expected to hold onto its position as the second-most used social media platform behind Facebook. “Instagram is doing really well—it is the second-most internet-penetrated social media platform in the US behind Facebook, and despite increased pressure from competition, we expect it to maintain its second-place position with a good gap from the rest of the platforms,” said eMarketer.  In fact, Instagram’s ad revenues are expected to continue growing at high double-digit rates and increase from $9.45 billion in 2019 to $13.86 billion in 2020. This can be partially attributed to the fact that Instagram has opened up more inventory for advertisers with newly introduced ads in different parts of the app, like the Discover tab. The platform is also currently beta testing shoppable ads, which are expected to play a major role in future growth of ad revenue. 

Nicole McCormick

Nicole is a wordsmith wizard, passionate about the written word and an avid storyteller who uses creatively crafted prose to help bring your brand’s story to the next level. A former journalist with writing credits in both local and national news publications and a few newspaper awards under her belt, Nicole now enjoys telling your stories and finding new and creative ways to create valuable content that resonates with audiences in the digital landscape.

Instagram announces new methods for creators to earn money

June 9, 2021

Social networks like Instagram have become increasingly shop-friendly, with many tools for advertisers, retailers, and creators rolling out over the last year. This week, Instagram began its first ever ‘Creator Week.’ Held between June 8-10, this event includes a series of invitation-only livestreams that present new features for Instagram-based influencers, artists and retailers. The event’s

read more

New Broadcasting Bill Could Affect Canadian Social Media Algorithms

May 5, 2021

Changes may be coming to the way that social media posts are regulated in Canada. Over the last year, the federal government has paid special attention to the Canadian Broadcasting Act, which regulates telecommunications. In November, Bill C-10 was proposed. This bill aims to update the Canadian Broadcasting Act to cover materials that are broadcast

read more

Leave a Reply

Your email address will not be published. Required fields are marked *