September 2023

© Copyright WARC 2023. All rights reserved.

Platform Insights: Instagram

In this report 2
Takeaways 3
Glossary: Instagram ad formats 4
Instagram and its parent company Meta were hit hard by the introduction
of Apple’s App Tracking Transparency (ATT) policy in 2021, and a Chapter 1: Investment 5
subsequent weakening of the digital ad market. Global, Instagram ad revenue, 2021-2024(f) 6
Global, Facebook and Instagram ad spend 8
Revenue suffered as a result, but Instagram’s recovery has been Instagram, Category spend 9
stronger than that of any of its social media peers. Instagram is forecast
to reach $71bn in ad revenue in 2024, driven by Meta’s innovation with Chapter 2: Consumption 12
AI to assist content recommendation and ad automation processes. Global, Instagram audience profile 13
Global, Time spent on social platforms 16
Instagram continues to attract creators and brands hoping to connect Global, Threads daily active user trends 17
with loyal communities. In the face of rising competition from YouTube
Shorts and TikTok, the platform’s pivot to short-form video with Reels is Chapter 3: Performance 22
also beginning to pay off. Global, Consumers attitudes towards ads on Instagram 24
Global, Instagram influencer benchmarks 27
In this Platform Insights report, exclusive to WARC Media subscribers,
we provide an overview of the key datapoints that advertisers need to What it means for brands 28
know about Instagram, spanning investment, consumption and More from WARC 29
performance insights.

© Copyright WARC 2023. All rights reserved.

2
Platform Insights: Instagram

1. Instagram has recovered purchase. Global retail 6. Instagram is investing in AI

strongly after a tricky 2022. By category spend on Instagram tools to boost consumption
Q4 2023, the platform is will rise from $3.2bn in 2020 to levels, spanning content
forecast to post quarterly ad a forecasted $9.1bn in 2024. recommendation and asset
revenues of $17.7bn, up 25.8% creation. Reels is key: plays
year on year. 4. Instagram’s global monthly already exceed 200 billion per
advertising reach has day across Meta products.
2. Buoyed by innovation in AI continued to stand at 1.3 billion
targeting and improved over the past two years, slightly 7. ​According to new research,
monetisation of Reels, ahead of that of TikTok. campaigns running on Reels
Instagram’s quarterly revenue will reach, on average, nearly
is predicted to reach nearly 5. Instagram users on Android twice the audience as those
$20bn by the end of 2024. devices spend on average 12 running on TikTok.
hours per month on the app –
3. The growing popularity of around half the time recorded 8. Nearly a third (30.4%) of
social commerce is moving by users of platforms like consumers turn to Instagram
Instagram closer to the point of TikTok and YouTube. when searching for brands.

© Copyright WARC 2023. All rights reserved.

3
Platform Insights: Instagram

Images ads Videos ads Carousel ads

Image may appear in the Instagram Video may appear in the square or Ad will appear in the square format or
‘square’, landscape or vertical format. landscape format (except for in Instagram vertical format on feed and stories.
Stories).

Instagram Stories ads Reels ads Instagram Shop ads

A full-screen vertical asset in Stories ads. Only a full-screen vertical asset for Reels Ad must be in the single-image, carousel or
Stories ads can support feed placement ads. collection format. All ratios are supported
photo and video dimensions, including a but ads will all appear as square 1:1 images
single photo or a video up to a 120 seconds and be tappable to brand website's product
in length. details page.

Note: Additionally, according to Meta, the main campaign objective types include: awareness; traffic; engagement; leads; app promotion; and sales.
Source: Facebook ads guide, Meta business help centre
4
 Chapter 1

Platform Insights: Instagram

© Copyright WARC 2023. All rights reserved.
Platform Insights: Instagram

$, billions

The recovery of Meta’s ad faring especially badly. Instagram 19.9

Thousands
business in 2023 has been one of avoided any year-on-year
19
the most notable media industry contractions, per WARC Media
stories of the year. Twelve months data, but growth was largely flat 17.7

ago, commentators were warning between Q2 and Q4 2022. 17

of a “reckoning” for Big Tech –
15.9
with platforms like Instagram What a difference a year makes:
hurting from signal loss resulting by Q4 2023, Instagram is forecast 15
14.1
from Apple’s App Tracking to post quarterly ad revenues of
Transparency (ATT) policy, $17.7bn, up 25.8% year on year.
13
alongside a broader slowdown in And better may be yet to come.
digital ad investment. Buoyed by innovations in AI
targeting – helping it to offset the 11
After more than a decade of impact of ATT – and improved 10.7
uninterrupted growth, Instagram’s monetisation of Reels, its TikTok-
9
parent company Meta like vertical video product, Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q4
experienced three consecutive Instagram’s quarterly revenue is 2021 2021 2022 2022 2023 2023 2024 2024 2024
(f) (f) (f) (f)
quarters of year-on-year ad predicted to reach nearly $20bn
revenue decline, with Facebook by the end of 2024.
Note: Data for 2023 and 2024 are WARC forecasts.
Source: WARC Media
© Copyright WARC 2023. All rights reserved.
6
Platform Insights: Instagram

Index, Q2 2021 ad revenue = 100

Meta reckons that ATT cost the Facebook Instagram Pinterest Snap
business up to $10bn in lost ad 200
revenue. Brands previously able
to retarget audiences across
180
apps were hindered by a lack of
opt-in by users to ad tracking.
However, Meta now claims 160
progress in using AI to “mitigate”
the impact of ATT. It launched
140
Advantage+, a tool which uses AI
technology to help advertisers
with tasks such as audience 120
targeting and ad placement.
100
Instagram in particular has
benefitted from the increased
80
monetisation of Reels: its annual
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
revenue run rate is at $10bn, up 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 (f) 2023 (f) 2024 (f) 2024 (f) 2024 (f) 2024 (f)
from $3bn in the prior 12 months.
Note: Indexed from Q2 2021, when Apple introduced the App Tracking Transparency (ATT) policy with Apple's iOS 14.5 update in April 2021.
Source: WARC Media
© Copyright WARC 2023. All rights reserved.
7
Platform Insights: Instagram

$, millions

At current trajectory, it is only a Facebook Instagram

matter of time before Instagram

80
surpasses its Meta stable mate

Thousands
Facebook to become the world’s
70
largest social media platform by
ad revenue. 60

Prior to the pandemic in 2019, 50

Facebook’s annual revenue was
more than twice that of 40
Instagram’s. While Facebook is
forecast to maintain that lead into 30

next year – driven by its vast

20
audiences in emerging markets –
that gap is expected to close, with
10
Facebook’s revenue 12.8% higher
than Instagram’s this year, and the 0
gap halving to 6.2% in 2024, 2017 2018 2019 2020 2021 2022 2023(f) 2024(f)
according to WARC Media data.
Note: Data for 2023 and 2024 are WARC forecasts.
Source: WARC Media
© Copyright WARC 2023. All rights reserved.
8
Platform Insights: Instagram

$, billions
12
Meta made headlines with its
Business & industrial
decision to scale back shopping 10.2
features, including removing the 10 Retail
Shop tab from a prime position on 8.9
8.7
Instagram’s user home screen. Telecoms & utilities

Nevertheless, the platform 8

Technology &
continues to encourage brands 6.7 electronics
to enable in-app purchases, Financial services
rather than sending users to off- 6
Media & publishing
site merchant websites.
4.0 Leisure &
4 entertainment
The growing popularity of social
Government & non-
commerce is moving Instagram profit
closer to the point of purchase. Automotive
2
This may be driving additional ad
Pharma & healthcare
spend by retailers. Global retail
category spend on Instagram will 0
increase from $3.2bn in 2020 to a 2020 2021 2022 2023(f) 2024(f)
forecasted $9.1bn in 2024.
Note: Periods denoted with (f) are WARC forecasts.
Source: WARC Media, based on analysis of Nielsen Ad Intel category data
© Copyright WARC 2023. All rights reserved.
9
Platform Insights: Instagram

$, millions
3000
The US Presidential election will Business & industrial
offer only a mild revenue boost
for Instagram. Politics is the 2500

platform’s smallest category by

Retail
ad spend, and will therefore have
2000
minimal impact on the company's
bottom line.
Telecoms & utilities
1500
In contrast, Instagram can expect
a surge in ad investment from
brands in the industrial and
1000
telecoms sectors. In Q4 2024, Technology &
electronics
business and industrial brands are
anticipated to spend $2.9bn on 500
the platform worldwide – up
Politics
20.1% year on year, according to
WARC Media forecasts – making 0
it the largest-spending category Q1 2023 Q2 2023 Q3 2023 (f) Q4 2023 (f) Q1 2024 (f) Q2 2024 (f) Q3 2024 (f) Q4 2024 (f)
on Instagram.
Note: Periods denoted with (f) are WARC forecasts. Select categories are highlighted; all other categories are included but unnamed.
Source: WARC Media, based on analysis of Nielsen Ad Intel category data
© Copyright WARC 2023. All rights reserved.
10
Platform Insights: Instagram

CPM (cost-per-thousand)

The post-pandemic surge in

digital ad spend contributed to $8.00

rising media costs and inflated

CPMs. More recent dips in
$7.00
spending have resulted in brands
being able to buy “more
impressions at lower prices”, $6.00
according to research by Skai.
Social CPMs have decreased
steadily over the last year, from $5.00
$7.62 in Q2 2022 to $5.24 during
the first three months of 2023.
$4.00

However, while Skai noted an

overall 4% dip in year-on-year
$3.00
social spending, it observed that
Instagram has “bucked that trend”
in recent quarters, with positive $2.00
spending growth. Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023

Source: Skai
© Copyright WARC 2023. All rights reserved.
11
 Chapter 2

Platform Insights: Instagram

© Copyright WARC 2023. All rights reserved.
Platform Insights: Instagram

%, share of Instagram’s advertising audience by age

group and gender
Instagram is undeniably an the favoured app amongst Gen Z
established platform, compared to users in Europe.
upstart social rivals like TikTok and Female Male
BeReal. Instagram’s monthly global However, with popularity and 16.9%
16.4%
advertising reach has stood at rapidly-advancing algorithms come
around 1.3 billion over the past two potential headaches. Multiple 13.9% 13.9%

years, according to Kepios, slightly studies have highlighted the

ahead of TikTok’s advertising negative impact of platforms such
reach. And while Facebook usage is as Instagram on young people’s
down 8% since 2017, Instagram’s mental health, promoting illegal 8.1%
7.6%
usage has grown 2% in that time, and harmful content, and threats to
according to Reuters, driven by brand safety.
4.7%
younger “digital natives”. 3.7%
4.3%
3.7%
As Meta pushes for greater AI 2.6%
Reuter’s research shows that adoption and innovation amongst 1.7% 1.5%
1.1%
Instagram leads the way in reach its products, safety is increasingly a
amongst younger audiences (60%), core consideration – the word was
13-17 18-24 25-34 35-44 45-54 55-64 65+
ahead of TikTok and Facebook mentioned ten times in its Q2 2023
(both 38%). GWI’s EU5 report earnings call, twice as much as Notes: Value uses midpoint of published ranges. Gender data are only available for "female" and
revealed that Instagram is currently “Instagram” itself. "male". Reach figures may not represent unique individuals or match the total active user base.
Users may misstate their actual age, which may result in distortions in the source data.
Source: Meta's advertising resources; Kepios analysis
© Copyright WARC 2023. All rights reserved.
13
Platform Insights: Instagram

%, demographic profile of the audience that marketers can reach with ads in the
Instagram stories and reels environment
Stories and Reels appeal to
similar demographic groups as
the primary Instagram product. Instagram Stories audiences Instagram Reels audiences
Female Male Female Male
Content from friends remains the
20%
top attraction on Instagram, 18.1% 18.1% 17.7%
18%
whereas users are drawn to 16.1%
16% 15.6%
TikTok for entertainment and 15.2%
13.9%
memes. According to Ypulse, 14% 13.4%

84% of young consumers report 12%

that they visit different social
10%
platforms for different content,.
7.8% 7.4% 7.6%
8%
6.2%
Meta reports that over 80% of 6%
4.7%
4.2% 4.6% 4.2%
4.2%
Reels are viewed with the sound 4%
3.8% 3.5%
2.8%
on and over 40% use effects. 2.2%
1.1%
2.2%
1.5% 1.2%
2% 1.1% 0.9%
More than half of Instagram users 0.7%

interact with a Reel at least once a 0%

13-17 18-24 25-34 35-44 45-54 55-64 65+ 13-17 18-24 25-34 35-44 45-54 55-64 65+
week, and Reels make up more
than half of content shared in
Notes: Value uses midpoint of published ranges. Gender data are only available for "female" and "male". Reach figures may not represent unique
messages. individuals or match the total active user base. Users may misstate their actual age, which may result in distortions in the source data.
Source: Meta's advertising resources; Kepios analysis
© Copyright WARC 2023. All rights reserved.
14
Platform Insights: Instagram

%, respondents

Instagram usage amongst both Gen Z Millennials

Gen Z and Millennials has 80%
increased over the past year, in
part due to Instagram’s push into
75% 74%
short-form video. The rising
popularity amongst Millennials is
particularly notable when it comes 70% 67%
to shopping, Reels and photo
filters, two of the areas Instagram
65%
has been focused on. A fifth (20%)
of Millennials use Instagram
shopping, versus 15% for Gen Z. 60%
60%

On Instagram, young consumers

55%
are especially receptive to 55%
content from brands or products.
In this respect, other platforms 50%
Jan-19 Jan-20 Jan-21 Apr-21 Oct-21 May-22 Nov-22 Apr-23
like YouTube, Facebook, and
Pinterest trail behind.
Note: sample number=1500 13-39-year-olds from 2019-2023.
Source: Ypulse survey data
© Copyright WARC 2023. All rights reserved.
15
Platform Insights: Instagram

Hours per month

Android users spend on average 25

23.5 hours per month on TikTok
and 23.1 hours on YouTube, 21.4
around twice the length of time
20
spent on Instagram. Meta aims to 17.6
cut this gap through innovation:
15.9
15.4
the company claimed that AI- 14.9
15
recommended content from
accounts not followed by users is 12.0

now the “fastest growing

10 9.5 9.5
category” across its feeds, 8.6 8.6 8.5
7.7 7.7
leading to a 7% increase in overall 6.9
6.1
time spent with Facebook.
5

Instagram is also exploring the

role of generative AI in improving
content creation, a programme it 0
Turkey Argentina Brazil Indonesia India Worldwide Canada Singapore Australia France Germany UK US Mexico South Korea
hopes will further enhance
consumption levels.
Note: Figures represent average number of hours spent per user, per month using the Instagram mobile app on Android phones throughout 2022
Source: data.ai intelligence
© Copyright WARC 2023. All rights reserved.
16
Platform Insights: Instagram

Millions

Threads – the Instagram-linked X (formerly Twitter) Threads

platform that closely mimics the 120
functionality and look of X 109

(formerly known as Twitter) – has 107

100
seen engagement dip since its 100
stellar debut. It arrived with a
splash: rapid early adoption in 80
July that saw its global downloads
reach 150 million in six days.
60
However, time spent on the app 49

was soon down by 50%.

40
28
Meta revealed that Threads
32
monetisation will only come after
20
the community has grown to a 10
scale. However, Similarweb found
that, despite launching the web 0
05/07/2023 15/07/2023 25/07/2023 05/08/2023 15/08/2023 25/08/2023 02/09/2023
Sep 2, 2023
version of Threads to boost
traffic, little improvement or
growth in usage has been seen. Note: Data from July to September, 2023.
Source: SimilarWeb
© Copyright WARC 2023. All rights reserved.
17
Platform Insights: Instagram

%, respondents
Last year, a leaked report painted a post, and prefer passive Gen Z internet users

bleak picture for Reels, with most consumption. Adam Mosseri, head Watched a video 43.1%
users showing “no engagement of Instagram, shared in an interview
Created Stories 34.6%
whatsoever“. Since then, Meta has that “users have moved on to direct
focused on transforming the short- messages, closed communities, Watched/uploaded content to Reels
form video product into a and group chats.” To some, Used filters
“discovery engine”. Plays are to Instagram has morphed into a
Reacted to polls/questions on Stories
reportedly exceed 200 billion per curated exhibition with
day across Meta properties. professionally created content and Used Instagram Discovery
highly advanced algorithms.
**Clicked on a link sticker on Stories…
Activities vary across Instagram’s
large user base. According to Communities foster the sense of *Click on a sponsored/promoted…
HootSuite, Instagram emerges top authenticity that all social platforms Posted polls/questions on Stories
amongst social platforms when it aspire to capture. Noticing this
comes to researching brands or shift, Instagram recently launched a Used IGTV

products, and also posting or subscription service for creators. Used Instagram Shopping Bag
sharing photos or videos. Talking about closed groups, now
with a small fee, users can be in the 0% 10% 20% 30% 40%

However, other data shows that same chat space with their Note: Data from H1 2023. Question asked “What have you done on Instagram in the last month?”
users are increasingly unlikely to favourite creators too. Full questions: *Click on a sponsored/promoted post or ad. **Clicked on a link sticker on Stories to
see more
Source: GWI
© Copyright WARC 2023. All rights reserved.
18
Platform Insights: Instagram

%, respondents

While shopping may only account Users who follow influencers on Instagram Internet users
for a fraction of the activity on 35%
Instagram, the platform has been 31.6%

honing its commerce strategy 30% 29%

and focusing on optimising Shops 26%
ads performances. 25%
20.8%
20.0%
With rising investment in retail 20%
17.5%
media, social platforms – led by
Instagram and TikTok – are 14% 15%
15%
improving ways to stimulate live
10.1%
and social shopping. Instagram in 10% 8%
particular encourages advertisers
to use Reels and creators to 5%
engage audiences and achieve
brand discovery. 78% of 0%
consumers say that creators are In the last week In the last month In the last year More than a year ago Never
influential in helping them
discover new brands. Note: Reads as “17.5% of internet users who follow influencers on Instagram have recently made a purchase because of influencer’s endorsement,
compared 14% of all internet users.” Question asked “How recently did you purchase a product or service because of a social media influencer's
endorsement?” Data from August, 2023
Source: GWI
© Copyright WARC 2023. All rights reserved.
19
Platform Insights: Instagram

%, average of selected countries

Users of Meta-owned networks

Facebook YouTube WhatsApp Instagram Twitter Facebook Messenger TikTok Snapchat
are more likely to engage with 50%

Hundreds
news content than those of other
45% 42%
social platforms. The latest
Reuters Institute study revealed 40%
36% 36%
that 14% of consumers had used
35%
Instagram for news in the
previous week, up from 9% prior 30% 28%
to the pandemic.
25%

In the UK, Gen Z sees Instagram 20% 20%

as its “most important” news
15% 14%
source. This poses issues for
10% 11%
publishers: despite being able to
lead news conversations on X 6%
5%
(formerly Twitter) and Facebook,
2%
journalists find it challenging to 0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
gain attention on networks like
Instagram, Snap, and TikTok.
Note: Question asked ‘Which, if any, of the following have you used for news in the last week?’ Total sample in each country-year in the UK, US,
Germany, France, Spain, Italy, Denmark, Finland, Japan, Australia, Brazil, and Ireland ≈ 2000. No data from Australia or Ireland in 2014.
Source: Reuters Institute
© Copyright WARC 2023. All rights reserved.
20
Platform Insights: Instagram

%, all internet users

Search behaviours change and

fragment across platforms.
Younger consumers – preferring 59.5%
60%
visual media – are increasingly
using social platforms searching 50%
for information and inspiration, as 43.2%
well as to discover brands: 40% of
40%
young people turn to TikTok or 33.5%
Instagram when looking for 31.0% 30.4%
30%
places to eat, rather than Google
Maps or Search. 21.2%
20%
14.0% 13.8% 13.4%
Aided by AI, Instagram is looking 12.0% 11.8% 10.6% 9.8%
to further its potential and added 10% 7.7% 6.7%
new ad formats to enable ads in
search results. Per HubSpot, 70% 0%
Google YouTube Amazon Facebook Instagram Twitter Bing Linkedin Pinterest Yahoo! ChatGPT Snapchat TikTok Reddit None of
of brands sell products directly these
via social media, and nearly 80%
buy advertising on the big four
Note: Data from May, 2023. Question asked “When searching for information on topics you're interested in, which of the following platforms do you
platforms, including Instagram. use?” ChatGPT and TikTok were offered as options in selected markets only.
Source: GWI
© Copyright WARC 2023. All rights reserved.
21
 Chapter 3

Platform Insights: Instagram

© Copyright WARC 2023. All rights reserved.
Platform Insights: Instagram

By consumers and by marketers

Instagram is an established media, marketers rank Instagram

platform and, as such, is well highest for ROI when selling
trusted by marketers. However, products directly in the app (33%, Consumers Marketers
a recent survey by Kantar, ranking vs. 25% for Facebook and 12% for
media owners according to their TikTok).
levels of trust, shows that 1 Amazon (-) 1 YouTube (+2)
Instagram has been displaced from Central to Instagram’s success is
the top spot by Alphabet-owned its traditional primacy as a platform
2 Google (+2) 2 Google (-)
Google and YouTube. for creator and influencer content –
albeit a dominance being
While preference levels have not challenged by TikTok. 3 TikTok (-1) 3 Instagram (-2)
been impacted, Kantar’s research
found that, for marketers, the Meta’s own research has found that
innovation of ads on Instagram has adding Instagram branded content 4 Instagram (+2) 4 TikTok (-)
fallen by 12% since 2021. ads to campaigns drives 19% lower
CPAs and 53% higher click-through
However, the upswing in ad rates, while consumers are 1.5x 5 Spotify (-2) 5 Spotify (-)
investment reflects a growing more likely to want to see branded
confidence in Instagram as a driver creator content on Instagram than
of sales. A global survey by on other platforms.
HubSpot found that, of social
Source: Kantar
© Copyright WARC 2023. All rights reserved.
23
Platform Insights: Instagram

User sentiment towards ad

campaigns on Instagram is Fun and
broadly positive, research from entertaining

Kantar suggests. Relevant and

Better quality
useful

The platform outscores Kantar’s

industry average benchmarks
Trustworthy Innovative
against criteria such as ‘fun and
entertaining’ and ‘relevant and
useful’. However, it will be
concerned by a deterioration in its Excessive Too much
targeting advertising
score on ad experiences being
‘repetitive’. Moreover, Instagram
Average 23
performs significantly worse than Repetitive Intrusive
Instagram 23
the industry benchmark against
Dull and Instagram 22
‘excessive targeting’, suggesting
boring Instagram 21
users are uneasy about how
Instagram deploys its rich trove of
first-party data.
Note: The chart compares consumer attitudes towards ads on Instagram from 2021 to 2023 and Kantar norms.
Source: Kantar Media Reactions 2023
© Copyright WARC 2023. All rights reserved.
24
Platform Insights: Instagram

%, metric share

The rise of Reels has been key to TikTok Instagram Reels

Instagram’s ad revenue 70%
65% 64%
resurgence. Introduced in August 61%
2020, the TikTok-lookalike short- 60%
54.4%
form vertical video product has
proved to be popular with users 50% 47%
and brands alike.
38.6%
40% 36.0% 36.4%
Given Instagram’s worldwide
scale, data from Emplifi suggest 30%
that campaigns running on Reels
will reach on average nearly twice 20%
the audience as those on TikTok.
According to Emplifi, Reels 10%
outperformed all other content
types on Instagram, generating 0%
55% more interactions than Median reach % Median interactions % Median video views % Median reach engagement
rate %
single-image posts on and 29%
more interactions than standard
video posts. Note: data range: April 2022 – June 2023. Sample of 1057 brands that have active profiles both on TikTok and Instagram.
Source: Emplifi data
© Copyright WARC 2023. All rights reserved.
25
Platform Insights: Instagram

Reels aside, brands that advertise Instagram engagement rate*

on both Instagram and TikTok see 0.8%
better results on Instagram’s main Carousel posts as a
percentage of all
posts feed when it comes to main feed posts 0.7% 0.7%
median reach, reactions and Average Average number of
monthly 0.6%
main feed posts per
video views. However, TikTok growth in day
account
page audiences grew faster than followers
Instagram on average in Q2 2023.

Photo posts have the lowest

engagement rate amongst video posts as a
Instagram ad formats, but remain percentage of all
main feed posts
the most popular amongst
brands. Meta encourages brands Photo posts as a
to shift towards Stories as a percentage of all main
feed posts
means of sharing “real moments”.
The media owner claims that All post Photo Video posts Carousel
types posts posts
demonstrations of brand
“authenticity and playfulness” Notes: Figures are average based on a wide variety of different kinds of Instagram business account, with different audience sizes, in various countries
around the world. *The engagement rate here refers to the combined numbers of likes and comments on a post compared with the number of account
resonate better with users. followers at the time of post publication.
Source: Locowise, We Are Social
© Copyright WARC 2023. All rights reserved.
26
Platform Insights: Instagram

Estimated influencer earning on Instagram Audiences of large creators

US vs. UK Creators with over 100k followers
The overwhelming majority (93%)
Gen Z followers
of influencers surveyed by Emplifi
work across multiple platforms, 1,200 9%
1,100

Thousands
Collaboration earning (US) $2,600 $7,800
and content tends to differ across 8% 8%
environments. 1,000
7%
820
Instagram is the most popular Post earning (US) 800 6%
$800 $2,400
choice (90%) for influencers, 5%
followed by TikTok (63%) – and 600
4% 4%
7% of that influencer content on
Collaboration earning (UK) $1,620 $4,860
Instagram is sponsored. The 400 3%
average earning from posting as 2%
an influencer on Instagram in the 200
1%
US goes up to $2,400 per post, Post earning (UK) $498 $1,495
according to Companion. 0 0%
However, the firm adds that Instagram TikTok

prices fluctuate depending on

Note: Earnings are estimates. The left chart reads as: “An influencer with 100,000 followers on Instagram in the US can typically expect to earn between
various factors including niche, $800 - $2,400 for a post.” A collaboration includes two main feed posts and two sets of x3 stories. British Pounds used for UK market are converted to
engagement and demand. USD. In the UK, an influencer with 100,000 followers on Instagram: can typically expect to earn between £400 and £1,200 for a post or £1,300 - £3,900
for a typical collaboration.
The right chart reads: “8% of the followers of 'large' Instagram creators (who have over 100k followers) are Gen Z”
Source: Billion Dollar Boy, Companion
© Copyright WARC 2023. All rights reserved.
27
Platform Insights: Instagram

Instagram has bounced back from its 2022 YouTube is the most popular online Instagram, like most digital platforms, sees
ad revenue difficulties. This is a clear sign platform, while TikTok is the fastest-growing communities fostered and connected
that its AI-driven ad innovations are social media. Instagram, meanwhile, retains through creators. Brands are increasingly
appealing to brands, and also signals a its established position and continues to partnering with creators to reach niche
heavier push for AI automation across tools attract Millennials and Gen Z users. audiences and find the right cultural
for advertisers (e.g. Advantage+). Meta uses Audiences tend to use different platforms moment, and to connect with communities
AI in ranking and recommendation, including for different purposes. As short-form video with authenticity. On the flip side, with public
all ads and content on Instagram. Therefore, consumption continues to grow, Reels, content posting now dominated by
safety will need to be at the forefront of shopping, and life update posts keep influencers and brands, users are turning to
considerations for marketers. Nevertheless, Instagram users engaged. Aided by closed groups and private accounts to
with CPMs easing and audience numbers Instagram’s advanced AI recommendations, engage with peers. As usage evolves,
holding firm, Instagram’s proposition for usage is likely to increase as overall global attitudes towards ads and brand content will
advertisers is a compelling one. social media consumption slightly grows also change and require careful observation
this year. and balance.

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reserved.
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Platform Insights: Instagram

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Platform Insights: Instagram

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