17 hours ago
Last Updated:July 02, 2025, 19:14 IST
In 2024, Instagram generated 40.6%–41.49% of Meta’s ad revenue, with projections suggesting it could contribute up to 49.9% of total ad earnings in 2025
Mark Zuckerberg understood that people in the modern era sought not just connection but attention. (AP/File)
In 2012, Mark Zuckerberg, then CEO of Facebook, was preparing for the company’s IPO but was troubled by the looming mobile era. Investors feared that Facebook’s value would plummet as users shifted to mobile devices, causing Zuckerberg sleepless nights over the possibility of Facebook flopping.
Amidst these worries, Zuckerberg discovered Instagram, an app that had launched just two years earlier. At that time, Instagram operated solely on iPhones, employed only 13 people, and generated no revenue. Despite these factors, Zuckerberg saw potential in the app.
Meeting The Man Behind Instagram’s Creation
Zuckerberg reached out directly to Instagram’s founder, Kevin Systrom, to discuss the future of the Internet and social media. Without the involvement of bankers or lawyers, the two founders met and finalised the deal within 48 hours, resulting in Zuckerberg purchasing Instagram for $1 billion.
Facebook’s board members were informed of the acquisition later, prompting critics to ridicule Zuckerberg for making such an expensive decision seemingly without careful consideration. However, Zuckerberg’s foresight proved invaluable.
Shortly after the acquisition, Instagram launched its Android version, achieving an impressive 10 lakh downloads on its first day. Zuckerberg understood that people in the modern era sought not just connection but attention. Instagram provided a platform for users to showcase their talents, gain fame, and earn money.
Crucially, Zuckerberg allowed Systrom to continue running Instagram independently, preserving its unique identity. This strategy enabled Instagram to flourish, attracting both celebrities and ordinary users who used the platform to express their creativity.
Instagram evolved from a simple photo-sharing app into a significant social media platform where users could become creators, influencers, and monetise their content.
Instagram’s Revenue
As of 2024, Instagram’s ad revenue ranged between $66.9 billion to $70.9 billion, with projections for 2025 estimating revenue between $59.6 billion to $71 billion.
The platform now boasts over 2 billion monthly active users, making it the third-largest social media platform worldwide. In India alone, Instagram has between 362.9 million to 413.85 million users.
Instagram is a substantial contributor to Meta’s overall revenue. In 2024, approximately 40.6% to 41.49% of Meta’s total ad revenue originated from Instagram, with expectations for 2025 suggesting this figure could rise to 49.9%. Zuckerberg’s decision, initially criticised, ultimately proved to be a masterstroke, ensuring Facebook’s continued success in the mobile-dominated future.
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Location :United States of America (USA)
First Published:News business Zuckerberg Was Called 'Crazy' For This Move In 2012, Today It's His Biggest Hit
