Kevin Systrom and Mike Krieger founded Instagram in 2010. Its virtual instant success got the attention of Facebook Inc.
Facebook Inc paid one billion dollars in stocks and cash for Instagram. So, how much is Instagram worth today?
This is the topic for this article. We will be discussing Instagram and how it became the giant it is today along with answering the question of its current worth.
It’s worth noting that the exact amount of Instagram’s worth is not publicly known, but there are estimations that are close.
Let’s talk about Instagram and answer the question, “How much is Instagram net worth?”.
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How Much Is Instagram Worth in 2024? (Net Worth)
According to the most recent data, Instagram’s net worth is estimated to be around $102 billion.
This is an approximation since its real net worth is not public knowledge.
Some statistical data suggests that Instagram’s revenue is about $319.47 million per year. The platform’s earnings come exclusively from Instagram ads.
Currently, Instagram has no subscription-based services from which to garner revenue. Therefore, it’s revenue, like Facebook, now Meta comes from ads.
What is Instagram?
To answer, “how much is Instagram net worth”, we need to talk a little about its inception,its expansion, and its evolution over the years.
Instagram’s Founding
In 2010, Instagram was introduced as an exclusively visual platform for photo and video sharing.
Its founders, Kevin Systrom and Mike Krieger used $500,000 in seed funding through PayPal to launch the platform.
The first IG test post was created and made July 16, 2010 by Mike Krieger, one of its original founders. It was a picture of South Beach Harbor’s Pier 38.
About four hours later, he posted a picture of a dog with his girlfriend’s foot.
On day one of Instagram’s launch, more than 25,000 people signed up and downloaded the app. Within a week, more than 100,000 people had joined.
How much was Instagram worth within its first year? By February 2011, this platform was worth an estimated $25 million.
Instagram’s Evolution
By 2012, Facebook Inc, now known as Meta, bought Instagram for a whopping $1 billion via stocks and cash.
Systrom profited around $400 million for the purchase.
If you want to know Instagram’s worth by measuring users, by 2014 the IG app had more than 600 million users.
The app was good in those days, but today, it’s easier to use and offers rich features for content creators and conventional users.
The evolution of Instagram embraced technology, features, and new algorithms that are consistently updated.
If you use Insta today, you know you can use hashtags, geotags, videos, and images associated with a location.
You can also choose whether your account is public or private. Instagram is easily connected to Facebook and other social media networks.
The features added in the past couple of years include IGTV, Instagram Reels, and Instagram Stories.
Instagram Direct is a private messaging service that works just like Facebook messenger.
If you operate a business, your IG account can be switched to a business account, much like you can do with Pinterest.
This is how you sponsor products and services that appeal to your specific audience. It is designed to let you separate your personal and business activities.
Currently, there are more than 1 billion users on the Instagram platform and it is still growing.
Instagram’s Accolades
Instagram is not only the first of its kind in social media, it has also won numerous awards over the years.
The first award came in 2010, the year it was launched, when it got the runner up position for “Best Mobile App” during the 2010 TechCrunch Awards.
Other awards, achievements, and accolades received by Instagram include “Best Locally Made App’, Best Android App”, App of the Year, One of the Most Influential Apps, and the fastest-growing mobile app in the world to name a few.
Today, IG is one of the biggest social media outlets in the world.
Instagram Marketing Facts
Research shows that Instagram videos generate double the comments than regular image posts. This means that video marketing should be part of any effective marketing strategy.
If you’re not using video marketing on Instagram, you are falling behind the 86% of businesses who are. That percentage is likely to grow. People are visual and video marketing is wildly popular.
During the pandemic, 68% of consumers reported that they watched more video content across social media platforms, including Instagram.
Why is this important? Because in another study, 87% of video marketers say that they got a positive return on investment from creating these videos.
Videos are shared 12 times more than any other type of content on social media. Plus, 84% of marketers have said that video content has given them better lead generation numbers.
Another 80% of marketers claim that their sales have been directly improved by videos.
94% say that video content has helped them to better explain their products and services so that their target audience understands their offerings.
These statistics and facts should be useful when creating your marketing strategy for Instagram and across social media.
Instagram’s Future
In 2023, it is expected to account for $65.21 billion in ad revenues, which would be about 60.9% of Facebook/Meta’s total ad revenues.
Top Instagram Statistics
- Today, Instagram’s worth is 100 times more than the $1 billion Facebook/Meta paid for it.
- In 2022, the estimated worth of Instagram is $102 billion.
- Instagram ad revenues in America came to $17.4 billion.
- Instagram posts provide 17 times the engagement compared to Facebook posts.
- 89% of brands use influencers to promote their products and services on Instagram,
- Over 50% of IG users are female, which improves marketing efforts.
- An estimated 81% of users on Instagram use it to discover new products, services, and brands.
Conclusion
Hopefully, you have gotten some interesting facts and figures from this information.
This article can help marketers create solid and viable strategies for social media marketing.
You cannot deny the fact that Instagram has more than 1 billion users across diverse demographics and target audiences.
Knowing these demographics will help you create efficient and accurate personas to whom you will market through your IG content.
All of these factors discussed in this article are directly or indirectly related to the question of “How much is Instagram net worth?”
There should be no doubt left in your mind that Instagram marketing, especially video content offers an effective way to reach out to your target audience while also helping you to build relationships and earn revenue.
