Instagram ad revenue poised to overtake Google and Twitter by 2017

Facebook-owned Instagram will be raking in $2.81bn in worldwide mobile ad revenue by 2017, according to the latest eMarketer forecast.

Facebook-owned Instagram will be raking in $2.81bn in worldwide mobile ad revenue by 2017, according to the latest eMarketer forecast.

This is compared to the $595m the photo sharing app made in ad revenue this year. The high growth rates, according to eMarketer, will be powered by new products enabling the platform to move into direct response, enhanced measurement and targeting and the ability to buy ads via an API.

eMarketer’s predictions would mean that Instagram will account for 10% of Facebook’s global ad revenues by 2017 and eclipse both Google and Twitter on mobile.

Debra Aho Williamson, eMarketer principle analyst, told The Drum: “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.”

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