Instagram is helping to drive Facebook’s continued strong growth in ad revenues. Facebook’s ad revenues are expected to reach $16.29 billion this year, an increase of 41.8 percent this year compared to 2014, putting its market share among social networks at 64.8 percent, up slightly from 64.4 percent the previous year.
In its most recent estimates, eMarketer expects Instagram to generate $600 million in ad revenue worldwide and account for 5 percent of Facebook’s mobile ad revenues in 2015. In 2016, Instagram’s growth is expected to take off, increasing by 149 percent to $1.48 billion globally.
Twitter Growth Estimates Lowered
With this report, eMarketer lowered growth estimates for Twitter from April. Ad revenues are expected to increase by 61.8 percent this year to $2.03 billion, giving Twitter 8.1 percent market share among social networks. In April, the growth rate was pegged at 66.9 percent.
The estimates, put out by eMarketer on Wednesday, show global social network advertising will hit $25.14 in 2015, up from the previous estimate of $23.68 in April.
“Twitter’s slowing user growth is impacting its ad business,” said eMarketer principal analyst Debra Aho Williamson. “Twitter has improved its ad targeting capabilities, and it still has a lock on real-time conversation. However, advertisers want to reach a mass audience and that’s harder to do on Twitter than on Facebook.”
The latest estimates find Facebook’s ad revenue per user will reach $48.76 in 2015 in the US — that’s higher than the April estimate of $43.43. In contrast, Twitter will take in $24.48 per US user in 2015, which is a downward adjustment from April.
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