According to Analyst, Instagram Revenue Estimated To Smash $5.8 Billion in Next 5 Years

February 21, 2015 • Latest Technology News and Articles • Views: 1,243

According to Analyst, Instagram Revenue Estimated To Smash $5.8 Billion in Next 5 Years

Instagram offers a fun and interesting way to share your life with family and friends. Posting a picture on Instagram is as easy as 1, 2, 3 and it is absolutely free. It offers its users a new way to see the world.

Over the years, Facebook’s has proved that their decision to buy Instagram was a smart one. According to a new estimate, this photo sharing network is proposed to generate revenue of $700 million this year, while it is projected to generate $5.8 Billion revenue by 2020.

According to the reports, the increase in sales is based on a survey conducted on advertisers and users interest. The year 2020 will witness an increase in the number of Instagram users as 680 million new users will join it by that time. A surge will also be seen in the number of advertisers.

“Given the user scale, adv. interest, shifting TV ad spend to Digital and FB’s monetization capabilities, we are more confident in our Instagram revenue ramp from $0.7BN in ’15 to $5.8BN in ’20,” the analysts wrote in the report, a copy of which was provided to Mashable.

Instagram was acquired by Facebook in 2012 for $1 billion, though the amount that was actually paid was quiet less. But it was in 2013 that Facebook gradually started monetizing the services after introducing advertisements.

Cowen’s analysts said, the worth of Instagram is about $33 billion and it also has more number of active users than Twitter, whose worth is about $30 billion. According to the reports, Instagram has over 300 million active users, which regularly share about 70 million photos and videos on an average. The reports have also proved that Instagram has grown by over 50% in the past years.

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