Social Media Means
Photo: Klaus Nielsen
Like Facebook, Instagram makes its money from advertising. Instagram's strengths include its young and global user base.
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Read More »In April 2012, Facebook (now Meta) acquired the photo-sharing app Instagram for around $1 billion in cash and stock; many Wall Streeters were puzzled. At the time, Instagram was less than two years old, boasted an employee workforce of 13, and had no revenue. In 2019, Instagram generated $20 billion in advertising revenue, according to a Feb. 2020 Bloomberg report. About 69% of America's marketers planned to spend most of their 2020 influencer budget on Instagram. According to a Bloomberg Intelligence report, Instagram was worth $100 billion by 2018. It had just been announced a few days earlier by Instagram they had reached the 1 billion active daily users milestone. It attracts a youthful audience. About 85% of teens use Instagram and 31% say it's their favorite app. Its users click on links. About 130 million users tapped on a commercial link for more details on a product. Its users actually want to see advertising. About 90% of shopping enthusiasts follow a business and 50% are more interested in brand after they see an ad for the product or service. In 2019, more than 98% of all Facebook revenue came from advertising. For the full year, it collected $69.7 billion in advertising fees, and a hefty portion of this income came directly from Instagram. Although separate figures are not reported, analyst research suggests that advertising growth on Instagram exceeds that of its parent. An ad impression is recorded when a user of a site views a page that includes an advertisement. In the Internet marketing world, ad impressions are good, but ad clicks are better. A click on an advertisement is a positive user response directing them to the advertised product's site.
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YouTubers are paid out monthly and either receive a check by mail or direct deposit. To start earning money from YouTube, creators must have at...
Read More »Ad impressions are seen as a leading indicator of ad hits. The more people see the ad, the more hits it is likely to achieve.
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