How Instagram Makes Money?

Instagram makes billions of dollars with PPC and Impression based advertisements. PPC and Impression-based advertisement are the Pay Per Click and Pay Per Impression Based ads, where advertisers pay money to Instagram on every single click or every single impression which they get from Instagram on their ads which is running through Instagram.

As Instagram has millions of active users and the number of them is gradually increasing. On the other hand advertisers and brands want to promote their products, and want to reach more and more people in less time.

So, brands found the most active social media platforms like Facebook, Instagram useful. Because they are booming in the industry with biggest audience.

So, brands promote their products and services on these popular platforms.

To promote their products, brands have to pay money to them.

And these social media platforms like Instagram, facebook charge money from brands based on PPC and impression.

Instagram was founded on 6 October 2010 and facebook bought it in 2012 around 1 Billion Dollar. And today Instagram earns 100 times more ad revenue then it’s actual birth.

Who Can Run PPC ads on Instagram?

Anyone on this planet who wants to run PPC ads or Impression Based ads on Instagram or on other social media networks.

If you have a brand or some products which you think you can promote and earn money from them, you can run ads to promote them among new and interested people.

Instagram and other social media networks serve your ads in front of interested people who are interested in buying your services, so that you can get maximum conversion from your ads and earn money with the help of these ads.

Do you know? You can run variety of ads using Social Media

• Stories Ads, You can run stories ads, in this type of ad you have to post a story using your account or any account which you want. Later on you can promote your story through stories ads.
• Photo Ads, Tell your story through a clean, simple, and beautiful creative canvas. Photos can be in a square or landscape format.
• Video Ads, Get the same visually immersive quality as photo ads, with the added power of sight, sound, and motion. 
• Crasoul And Collection Ads, Add another layer of depth to campaigns, where people can swipe to view additional photos or videos in a single ad. Collection ads help when you have more than one products and you want all of them in a single ad, you can do it with collection ads.

To run ads on Instagram you have to visit Instagram Business Page.

You can filter your audience with the help of Demographics, Location, interest, behavior, audience, etc. So that your ad can reach the most targeted audiences which matters to you.

How much Money Does Instagram Makes In A Year [Instagram Revenue]?

Instagram makes about 18.16 Billion dollar ad revenue which is slightly less than facebook.

In 2018 Instagram ad revenue was 6.18 billion dollars from US only. And in 2021 it increased by 33℅ and become 18.16 Billion dollars.

In 2019 Instagram earned 9.45 billion dollars ad revenue from US only.

It scored second position in terms of earning because after facebook’s 29.9 Billion Dollars ad revenue, Instagram earned 9.45 Billion Dollars as ad revenue from US only.

If we count all the countries worldwide Instagram cross over 100+ Billion dollars ad revenue.

No of Users On Instagram World Wide

As you can see Instagram is the 6th most biggest social media platform with 1082 Million users. Whereas, facebook is the world’s biggest social media platform with 2603 Million users.

The users on instagram are rapidly increasing every day. And Instagram gets 30K-70K new sign ups everyday.

Daily Active Users on Instagram

In 2016 there were about 428.1 Million, active users, on Instagram and they has become 909.8 Million in 2021. They will go up to 988.1 Million till 2023.

No of the active users are those users who are using Instagram on daily basis for their personal and professional purpose.

Leading countries based on Instagram audience size

US is the leading country with 130 Million+ Instagram users. India ranks in the second position with 100 Million+ users. After that Brazil, Indonesia and, Russia comes.

And Egypt comes last in the list of countries that has a minimum number of Instagram users which are 13 Million+.

Why PPC ads Are Successful?

PPC and the Impression based ads are successful because they are accurate and cost effective.

With the help of PPC ads, you can filter out the audiences and you can reach the most targeted audience which really matters to you and your business.

Along with it, they are cost-effective even with a low budget you can start PPC based ads Campaigns.

They are accurate and you can reach the most targeted audience with these ads, that means your chances are slightly higher to get more conversions.

Almost every social media provides you the facility to run ads to make your business more successful.

Just like other social media platforms Instagram, also makes money with PPC ads, where advertisers show their ads to interested people and they pay to Instagram and Instagram makes money.

Every year the ad revenue of social media breaks its record of the previous year and they make up to 20% more profit from the previous year.

It is possible just because of their accuracy and profitability. Advertisers also make a good profit with PPC ads, so it’s a win-win situation for advertisers and social media as well.

Anybody can run Ads on social media even with a low budget. You don’t need to be a brand or a registered company to run ads.

How Much budget you should have to run Ads?

There is no limit of budget you can start from $1/day also and you can go as higher as you can up to $10000/day or more.

There are a lot more people out there who don’t have any product to promote but still, they are using the Social Media ads to earn money.

They are promoting other brand’s products with the help of affiliate marketing and they are earning commission while selling another brand’s products.

For it, they are affiliated with other brands and they are helping them to sell their products for it brands are paying them money.

Key Notes

Instagram makes money with PPC and Impression Based advertisements.

Advertisers run ads to promote their brands and products for it instagram and other social media networks charge them money.

PPC ads are so much successful because with the help of these ads you can reach the most targeted audience so that you can get more interested customers for you business.

Social Media and social media marketing is booming now these days with most active users and the number of it is increasing day by day.

The ad revenue of of every social media is breaking its own record of previous year.

Running ads on social media is very easy and most effective way to drive more customers for any business. Anybody can start it you don’t need to be a brand or registered company to run ads on social media.

They are cost effective even with a lower budget you can start social media and google ads.

Conclusion

In this article I tried my best to answer your query about How Instagram Makes Money?

Along with it I have written some more info about instagram that How much Money Does Instagram Makes? Daily Active Users on Instagram? Etc. So that you can get a broad overview about the social media and social media marketing.

If you still feel any doubt or any catchy gap which you feel should be covered during this article or any question which you want to ask? Feel free to ask me in the comment section.

You can drop a comment to let me know if this article helped you, or you found this article helpful.

Cheers.!