Instagram is set to account for more than half of Meta Platforms' advertising revenue in the United States next year, as the social media platform improves monetisation of its products, according to research firm Emarketer.

Why it's important

Instagram's Reels competes with ByteDance's TikTok and YouTube Shorts, as users find short-form videos more engaging, driving marketers to adopt the format at a time when Meta is looking to boost revenue from the product by placing more ads.

Context

If a TikTok ban takes effect in the US, Reels and YouTube Shorts could become attractive alternatives for advertising, potentially boosting Instagram's growth.

Key quotes

"Instagram is now a video-first platform, with users spending close to two-thirds of their Instagram time watching videos," Jasmine Enberg, principal analyst at Emarketer.

"If the TikTok ban is enforced in 2025, Instagram could capture over one-fifth of reallocated TikTok ad dollars in the US," Enberg added.

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