How does Instagram make money?

 How does Instagram make money?

Instagram makes the majority of its money from advertising, which should come as no surprise. Paid ads can be set up to show in Instagram feed posts, Instagram stories, and the Instagram Explore tab, among other places. Instagram can be utilized as a primary or secondary ad channel for Facebook campaigns, and both can be set up and managed in the same Ad Manager.

Photo by Jose Francisco Fernandez Saura

According to a Bloomberg analysis, Instagram generated $20 billion in revenue from adverts alone in 2019, accounting for more than a quarter of Facebook's $70.6 billion revenue. Instagram is expected to generate $22.2 billion in revenue in 2020, according to Statista. In the same year, Facebook generated $85.96 billion in revenue.

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