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Instagram Revenue To Hit $5.8 billion by 2020

Filters In The Future 

Our ever popular photo-sharing network is projected to generate $700 million this year. That's going to jump to $5.8 billion in revenue in 2020 according to new estimates from analysts with Cowen & Co.

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That is some remarkable growth. I can only imagine that Facebook is gleefully rubbing its hands together after it’s smart move to buy Instagram. I wish my investments would do that well. Maybe it’s time for all of us to purchase just a little bit of Facebook stock?

This prediction for greatly increased revenue is based on another prediction that the report makes. Cowen’s report estimates that by 2020, Instagram’s user base will have more than doubled to 680 million picture happy fanatics.

I don’t see why that’s a too farfetched idea. Every day I find that more and more of my friends who have always sworn off from Instagram and its filters have finally taken the plunge and started following me. It’s only natural – Give in to the dark side of filtering everything. Even some games have the right idea.

Naturally, the huge increase in user base leads to a huge increase in advertisers utilising the photo-sharing platform. Hence the ridiculously massive projected revenue for 2020.

Here’s what the analysts at Cowen & Co said in their report concerning Instagram’s revenue.

‘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.’

Facebook picked up Instagram in 2012 for what was a relatively modest $1 Billion. (I say modest when we speak about the realms of money these places dish out) and since then it’s now estimated to be worth about $33 Billion. Once again Facebook are showing us how and when to pick up brands.

Instagram now boasts more monthly users than even twitter and it still shows no signs of slowing down. It’s the social media giant that we all hate to love.

Did you know, that in 2014, if you stacked up all the Instagram photos on top of each other that were uploaded within 12 hours, you’d have a stack as high as Everest? In 6 days you’d have a stack that would reach the outer edge of the earths atmosphere. This was all last year as well, these figures are only going to go up. Take a quick look here.

I think it’s very safe to assume that Instagram are going to hit their revenue markers for 2020. It may sound like a ludicrous amount to us now, but they show no signs of slowing down.

Time to filter everything.

Tom Welby

Tom has a degree in Creative and Professional Writing and now he currently manages, edits and writes for this blog. His other interests include Arnold Schwarzenegger films and his dog. Follow him @TomAtSMF

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Instagram Revenue To Hit $5.8 billion by 2020 Reviewed by Tom Welby on Wednesday, February 25, 2015 Rating: 5
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