Monopoly accusations often end up in court, a move that is usually very interesting in terms of data and information. We already saw with the famous clash between Microsoft and the FTC that dozens of interesting details came to light. Now it’s Meta that is in the eye of the storm, so we are learning relevant data such as their advertising revenue with Instagram.
According to the provided document, during the year 2021, Instagram achieved $32.4 billion in advertising revenue. The figure is impressive, but it is even more significant when compared to YouTube, which drops to $28.8 billion. Although it may seem that Google’s platform is more profitable than Instagram, the reality is that more money is made through advertising on the Meta social network. However, there is a certain “trick”.
In the case of YouTube, it pays its content creators with 55% of the advertising revenue. This percentage is much lower for Instagram – the exact figure is unknown, only that it is lower – as pointed out by The Verge, so it makes a lot of sense that advertising revenue is higher if less is given to content creators.
This lower amount of advertising revenue also extends to previous years. For example, advertising on Instagram generated $22.000 billion in 2020, while in 2019 the amount decreased to $17.900 billion. YouTube, on the other hand, obtained $19.700 billion in 2020, while in 2019 it was a total of $15.100 billion. As you can see, always below Instagram.
Although Google’s platform is behind in advertising revenue, there is no doubt that both platforms earn more money from advertising each year. Just look at the numbers.
