Instagram accounts for 27% of Facebook ad revenues

Anne Freier

In Mobile Advertising. January 30, 2019

Instagram accounted for 27% of Facebook’s ad revenue in Q4 2018, according to data from Merkle. The rise marks an 8 percentage point increase from Q3. Instagram appears to have tripled its 9% share of Q1, according to the latest Digital Marketing Report Q4 2018.

Merkle attributes this rapid growth to brands upping their ad spend across the popular photo platform. Indeed, advertisers increased their spending by 138% during Q4 on Instagram ads. Meanwhile, CPM fell 17% during the same quarter.

As Facebook matures and has previously predicted lower ad revenue, Instagram is expected to make up a larger chunk of the social media network’s total revenues from advertising.

Facebook is facing the dilemma that it can’t place any more ads without losing users and it has suffered multiple negative news stories leading to advertisers pulling their ads.

Meanwhile, Pinterest has seen a rapid increase in ad spend across the platform with CPM jumping 57% during the quarter.

The report also found that Google search ad spend jumped 18% year-on-year during Q4 2018. Spending on Google Shopping ads increased 42%, marking the highest growth rate for this ad type.

Furthermore, Google dominated for mobile search, accounting for 96% of US search visits.