Despite the decrease, Instagram grows in profits
With apps like TikTok pulling from their users base Instagram is seeing a substantial decreased growth. The platform has had a slow decline in growth, though the percentage has just recently dipped below the double-digit mark.
Since Facebook purchased Instagram in 2012 the platform grew exponentially. From June of 2016 to June of 2018 the platform doubled in size going from 500 million users to 1 billion active users. Additionally, it was estimated that Instagram generated 14 billion in revenue.
Though when compared to Instagram, The Verge reported, TikTok is coming up on 1.5 billion users since it’s launch outside of China.
Emarketer estimated that Instagram’s decline isn’t a just phase and the growth will continue to diminish over the coming years.
“Growth will be at 4.5% in 2020, revised down from 5.4%, and in 2021, it will be 3.2% instead of 4.1%. Contributing to Instagram’s overall slower growth is the fact that older age groups are not joining the platform as quickly as anticipated.”
All of that to say while Instagram is seeing a continued decrease in users joining the platform that can’t detract from the fact that Instagram is a powerhouse.
Social media is an industry that is always in flux. New competitors are arriving every year to take a bite out of the industry, and Instagram isn’t a spring chicken when it comes to what’s new.
Despite the news that the platform isn’t growing by leaps and bounds, “Instagram will account for nearly 25 percent of Facebook’s ad revenue in 2020. This figure is expected to grow to 30 percent by 2020.”
These stats make sense when considering that 63% of Instagram users log in each day.
The real take away from this news is that while Instagram has seen a decrease in news users the platform is on track to be more profitable than it has ever been, and will continue to see high amounts of traffic.