According to the Warc study, the value will be driven by innovations in AI segmentation and monetization of Reels
With almost a third (30.4%) of consumers using Instagram when searching for brands, the retail category is expected to invest US$9.1 billion in 2024.
Warc Media forecasts Instagram’s advertising revenue to reach $71 billion in 2024, driven by Meta’s innovation with AI to assist with content recommendation and advertising automation processes.
Driven by innovations in AI aimed at increasing consumption levels, covering content recommendation and asset creation, and better monetization of Reels, Warc Media predicts that Instagram will have revenue of US$17.7 billion in the fourth quarter of this year. , an increase of 25.8% year over year.
Also according to the survey, global spending in the retail category on Instagram will increase from US$3.2 billion in 2020 to a projected US$9.1 billion in 2024. In front of retail spending, it is expected that spending on business advertising and industrial reach US$10.2 billion worldwide, while other categories show modest growth.
Warc also showed that the use of Instagram among Generation Z and Millennials increased last year, in part due to its investment in Reels, reaching 60% of the younger audience, ahead of TikTok and Facebook (both 38%).
