Instagram Stories Already Generates 10% of Facebook's Ad Revenue
Facebook (NASDAQ: FB) didn't take long after it launched Instagram Stories in 2016 before it started inserting advertisements into the app's new feature. Facebook saw strong enough engagement that it felt confident enough to do so. About three years later, Instagram Stories has over 500 million daily active users and accounts for 10% of ad spending on Facebook's platforms, according to research from Socialbakers released this week.
The social media marketing company found ad spend on Instagram Stories increased nearly 70% year over year in its latest quarterly report. Facebook's overall ad revenue growth came in at 28%.
There is no doubt Stories has been a key driver for Facebook's revenue growth over the last few quarters. Now, as a significant contributor to the tech company's total revenue, investors need to consider whether Instagram Stories ad spend will continue to grow at a pace well over twice as fast as the rest of Facebook.
Source Fool.com
