Instagram achieved turnovers of $20 billion US last year. The picture sharing platform thus generated 578% more than Twitter. As a new infographic by Block-Builders.de shows, Instagram is becoming increasingly influential and is apparently even benefiting from the Covid19 pandemic.
Facebook acquired the image sharing service in 2012 for around €760 million. Mark Zuckerberg was forced to defend such a high purchase price at the time. Today, more than a quarter of Facebook’s revenue comes from Instagram.
Instagram is now worth around $100 billion, according to calculations by Bloomberg. As a comparison: Deutsche Bank’s market capitalisation is $23.4 billion US, while BMW and Daimler weigh in at $56.4 and $72.4 billion respectively.
As the infographic shows, Instagram is becoming increasingly popular with both private users and businesses. 62% of Germans use Instagram. Among businesses, the figure is as high as 76%. Worldwide, the social network records 1 billion active monthly users.
Instagram and Corona
The pandemic seems to have boosted Instagram and other similar platforms. In a Bitkom survey, 75% of Germans reported increased use of social media since the outbreak of the crisis.
Instagram is not only growing at an impressive rate, it is also becoming increasingly easy to monetise. Last year, 21% of users made purchases based on social media ads, compared to 31% this year. This makes Instagram increasingly attractive to companies and advertisers. Features like Instagram Shopping are well received by customers.
Instagram is outperforming its big brother Facebook not only in terms of growth, but also in terms of user interaction. The engagement rate per post stands at 2.2%, compared to Facebook’s 0.22%.
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