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Instagram ad revenue expected to reach half a billion by 2016

Instagram ad revenue expected to reach half a billion by 2016

Social media is playing an increasingly central role in the internet marketing campaigns of companies worldwide, and figures show that the money spent on them is steadily rising.

Popular social media websites like Facebook, Twitter, Instagram and others are being used by businesses worldwide to connect with customers of all ages. A survey which was conducted in 2012 by Social Media Examiner, a company based in the US, revealed that 83 per cent of business owners believed that social media played a crucial role in the success of their company.

According to 85 per cent of the companies surveyed, even a small amount of time spent incorporating social media into a marketing campaign was rewarding. The survey revealed that younger people aged 20 to 29 years old spent more time on social media sites than other age groups. As the number of businesses utilising social media continues to increase, it is predicted by emarketer that ad revenues will continue to grow. The predicted ad revenue for Twitter has been revised twice due to unexpected demand. One year ago, the ad revenue for Twitter was estimated at $540 million. Revised estimates indicate $950 million for 2014 and $1.33 billion in 2015.

Ad revenue for Facebook has grown 40 per cent to reach $1.6 billion, with ad revenue for Instagram expected to reach $500 million by 2016. According to Darine Sabbagh who is a social media advisor for some of the largest companies in Lebanon, social media takes time and commitment to connect successfully with customers. As competition between businesses increases, companies have to do more to stand out.

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