Instagram Ad Statistics 2025: Unlock Hidden Growth

The advertising ecosystem on Instagram has evolved dramatically. Marketers today reach vast audiences, optimize for performance, and measure deeper ROI than ever. In industries from retail to B2B software, Instagram ads are driving measurable outcomes. For example, a fashion brand using Instagram Stories saw a 22% lift in conversion rate, and a SaaS company using image ads cut its cost per acquisition by 18%. In the following sections, we’ll unpack the latest statistics that define Instagram’s ad reach, revenue, and audience.

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Here are seven key statistics that give you a quick overview of where Instagram advertising stands in 2025:

• Instagram’s ad reach global potential stood at 1.74 billion users in January 2025, up 5.5% year on year.
• Instagram’s ad revenue is projected at $67.3 billion in 2025.
• Around 29% of Instagram users reported purchasing the platform in 2025.
• The average cost per click on Instagram ads is approximately $1.23.
• In 2024, Instagram generated an estimated $66.9 billion in revenue.
• More than 60% of Instagram users are under age 35.
• Outside the U.S., about 90.43% of Instagram’s 1.88 billion reachable users are international.

Recent Developments

• Instagram’s potential ad reach increased by about 5.5% in the 12 months leading up to January 2025.
• A forecast indicates Instagram will contribute more than 50% of its parent company’s U.S. ad revenue by 2025.
• Instagram ad business growth is projected at around 12% year on year, in contrast to some rivals growing faster.
• Marketers increasingly focus mobile mobile-first, visually immersive ads, reflecting Instagram’s pivot toward Reels and Stories-heavy formats.
• Instagram introduced expanded global features for ad placements and insights in early 2025, with Meta tools showing new ad reach filters.
• Brands are shifting ad budgets from static posts toward video formats as Instagram emphasizes Reels and full-screen formats.
• Instagram added enhanced measurement tools for conversion tracking and ROAS during 2024,25.
• The platform’s ad reach now covers roughly 21.3% of the world’s population as of January 2025.

Instagram Ad Revenue Growth

• Instagram generated an estimated $66.9 billion in revenue during 2024.
• Revenue figures by year: 2023 $49.8 billion, 2024 $66.9 billion.
• Instagram’s share of parent company Meta Platforms’ total revenue was approximately 40.6% in 2024.
• Instagram ad revenue is projected to reach about $67.3 billion in 2025.
• Another estimate puts Instagram ad revenue at $70.9 billion in 2024.
• A forecast shows Instagram will make up over 50% of Meta’s U.S. ad revenue by 2025.
• Instagram’s ad revenue growth from 2022 to 2023 was roughly from $36.9 billion to $49.8 billion, showing strong momentum.
• With Instagram’s ad revenue at this scale, it ranks second among social platforms globally in ad earnings.

Global Instagram Ad Reach

• In January 2025, Instagram ads could reach about 1.74 billion users globally.
• That reach figure represents approximately 26.9% of all people aged 13+ worldwide.
• When excluding China, where Instagram is blocked, the age-eligible adoption rate jumps to around 33.3%.
• Instagram ad reach covered about 28.8% of all adults aged 18+ globally in January 2025.
• Instagram ads reached roughly 31.3% of the world’s internet users at the start of 2025.
• International users, outside the U.S., make up about 90.43% of Instagram’s 1.88 billion reachable users.
• The growth in reach year on year added around 90.8 million additional users accessible via ads.
• Instagram’s reach places it third among social platforms outside China for ad audience size.

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Global Instagram Ad Audience

• India commands the world’s largest Instagram advertising audience, reaching 326.6 million users in total.
• The United States follows in second place, achieving a notable Instagram ad reach of 168.6 million people.
• Brazil secures the third position with an available Instagram advertising audience of 132.6 million users.
• Indonesia features a strong regional presence with an Instagram ad audience measuring 106 million individuals.
• Turkey contributes an accessible Instagram advertising base of 56.4 million users.
• Japan maintains steady digital engagement with an Instagram ad audience of 54.7 million people.
• Mexico participates in the Instagram advertising landscape with 43.8 million reachable users.
• The United Kingdom completes the group with 33.5 million potential viewers for Instagram advertisements.

Instagram Stories Ad Statistics

• Over 500 million users engage with Instagram Stories daily.
• Story ad placements reach 900 million+ users monthly in 2025.
• Approximately 25% of users visited a website after viewing a Story ad.
• Reach rates increase from 6.3% for slide 1 to 20.5% by slide 6 in certain accounts.
• Stories with video tend to show higher tap-forward and exit rates.
• The optimal sequence length for Stories is 6 to 13 slides, with reach peaking at 37.8% at slide 13.
• Stories’ image content remains dominant at 56%.
• Story ad completion rates average around 70%.
• Accounts with 100K to 1M followers average 80 Stories per month.
• Audiences have become more selective, reflected in rising tap forward rates.

Age and Gender Breakdown of Instagram Ad Audience

• The age group 18-24 makes up 32% of Instagram’s global user base in 2025.
• The age group 25-34 makes up 29% of Instagram users.
• In the U.S., 55.4% of Instagram users are women and 44.6% are men.
• Globally, one dataset shows 49.4% female and 50.6% male among Instagram users.
• Users aged under 35 constitute more than 60% of all users.
• The median user age continues to shift younger with the popularity of Reels and Stories.
• Male users aged 18-34 represent a significant segment of ad targeting potential in the U.S.
• Female users aged 18-34 tend to show higher engagement in sponsored content than older groups.

Reels Ad Performance and Trends

• Reels engage over 2 billion users monthly as of 2025.
• Daily Reels plays exceed 200 billion.
• Reels ads reach 726.8 million users, about 55.1% of Instagram’s total ad audience.
• Reels generate 22% more interaction than standard video placements.
• Engagement benchmarks show Reels at 0.50% in 2025.
• Short-form video continues to dominate budget allocation.
• Reels account for about 35% of all time users spend on Instagram.
• In markets like India, Reels adoption is especially strong.
• Advertisers are shifting spend from static feed posts toward immersive video formats.
• Meta’s monetization focuses on an increasing share of Instagram inventory dedicated to Reels.

Top Platforms Users Are Most Likely to Buy From on Social Media

• 31% of users are most likely to make purchases on Facebook, positioning it as the leading platform for social commerce.
• 23% of users favor shopping through Instagram, giving it the second-highest ranking.
• 8% of users are inclined to complete purchases on TikTok.
• 3% of users report that they are most likely to buy products from Pinterest.
• 26% of users state that they would not purchase from any social media platform at all.

Instagram Carousel Ad Engagement

• Carousels deliver the highest engagement among formats, averaging 0.91%.
• Some studies show carousel ads reaching 1.92% engagement, higher than static images and videos.
• Carousels drive 12% more engagement than Reels and far more than static images.
• Carousels with 10+ slides can surpass 2% engagement.
• Carousels represent 19% of content but yield disproportionate engagement.
• Swipe through rates and savings are significantly higher for carousels.
• Carousels are often used for educational or step-by-step storytelling.
• They are valuable for multi-product campaigns and showcasing detailed features.
• Richer formats can result in slightly higher CPC or CPM.
• Creative effort is required, but returns high engagement value.

Instagram Video vs. Image Ad Performance

• Video ads achieve 3.8% engagement vers1.8% for static images.
• Video posts generate 49% more engagement than photo posts.
• 2025 format benchmarks, carousels 0.55%, Reels 0.50%, static images 0.45%.
• Motion-based ads yield better completion and dwell time.
• Video first strategies dominate awareness objectives.
• Algorithmic distribution favors video formats in many cases.
• For conversion objectives, performance differences narrow depending on audience and placement.
• Mobile connectivity improvements drive higher video adoption.
• Static images remain cost-efficient for reach or retargeting.
• A balanced mix of video and image formats tends to perform best overall.

Average Cost Per Thousand Impressions (CPM)

• The average CPM on Instagram is around $8.58 in early 2025.
• Some combined benchmarks report CPM at $8.19.
• CPM ranges typically fall between $5.00 $15.00.
• A segment of advertisers reports CPM under $4.00, depending on targeting.
• Premium placements usually incur higher CPMs.
• Seasonal peaks can drive CPMs to $10 to $13.
• Lower CPMs often occur in broad reach, less targeted campaigns.
• Higher CPM is not always negative if conversions justify the investment.

Instagram Ad Conversion Rates

• Average conversion rates are roughly 1% to 2% in 2025.
• Some studies show a 1.08% conversion rate.
• Instagram’s conversion rates surpass some competitors, for example, Facebook, 1.1%.
• Catalog sales may reach up to 3.5% in certain cases.
• About 45% of users report purchasing after seeing a product on Instagram.
• Story ads often outperform feed posts in conversion efficiency.
• Warm audiences and retargeting tend to exceed platform average conversion rates.
• Advertisers must calibrate CPA targets with prevailing conversion rates.

Instagram Content Types with the Highest Engagement Rates

• Photo Posts sit at the lowest level with 0.59%, signaling a broad shift toward more dynamic content formats.
• User-Generated Content stands out with the highest average engagement rate of 4.5%, highlighting its strong sense of community trust and authenticity.
• Educational Content comes next with an engagement rate of 2.5%, demonstrating that informative posts inspire meaningful interactions.
• Behind-the-scenes Content secures an engagement rate of 1.8%, appealing to users’ natural curiosity.
• Instagram Live maintains a solid 1.5% engagement rate, emphasizing the value of real-time audience interaction.
• Reels deliver an engagement rate of 1.48%, benefiting from the widespread popularity of short-form video.
• Carousel Posts reach 0.91%, providing users with interactive multi-image content.
• Stories generate 0.82%, continuing to hold consistent user attention.
• Shoppable Posts record an engagement rate of 0.70%, reflecting moderate performance in commerce-focused content.
• Video Posts attain 0.69% engagement, positioning them just slightly above static images.

Mobile vs. Desktop Instagram Ad Performance

• Over 80% of Instagram ad impressions are from mobile devices.
• Desktop Instagram ad impressions represent less than 20% and generally cost more.
• Mobile Instagram ads achieve completion rates averaging around 82%.
• Mobile-first Instagram ads reduce cost-per-click (CPC) by about 10-30% compared to desktop.
• Desktop ads contribute cross-device conversions estimated at around 15-20% of total conversions.
• Transitioning from desktop to a mobile-first strategy lowers cost-per-acquisition (CPA) by 10-20%.
• Vertical 9:16 Instagram videos generate up to 3 times more engagement on mobile than desktop.
• In the U.S., over 90% of Instagram users primarily access the platform on mobile devices.
• Mobile Instagram ads typically have a cost per thousand impressions (CPM) of about $2 to $5, while desktop CPM ranges from $4 to $15.
• Instagram Reels ads on mobile produce 3x more interactions than on desktop placements.

Influencer Marketing Impact on Instagram Ads

• The influencer marketing industry is projected to hit $32.55 billion by 2025.
• Brands partnering with influencers achieve average ROIs of 5.78×.
• Nano influencers see engagement rates of 3.86%, compared to macro influencers at 1.21%.
• Approximately 63.8% of brands plan to use influencers in 2025.
• Nano influencers made up 75.9% of Instagram’s influencer base in 2024.
• Influencer ads often outperform branded creative due to authenticity.
• Influencer creative boosts engagement by 10 to 30% in many campaigns.
• Side benefits include social growth and reusable content.

Instagram Shopping and Purchase Intent Statistics

• About 61% of social media users discover products on Instagram.
• An estimated 46.8 million people in the U.S. will have purchased via Instagram by 2024.
• 43% of global Instagram users shop directly through the app.
• Instagram referred shoppers show $65 average order value.
• Product tags can increase purchase likelihood by 37%.
• In-app checkout reduces friction and lifts conversion.
• Remarketing via Instagram Shopping boosts conversion by 1.2× to 1.5×.
• Purchase paths are increasingly rapid with fewer touchpoints.

Industry-wise Instagram Ad ROI

• Retail and eCommerce brands see the strongest ROAS on Instagram.
• Fashion and beauty frequently exceed 1.5% to 2.5% conversion rates.
• B2B industries see lower conversions but benefit from brand lift.
• Travel and hospitality see higher CPMs and longer purchase cycles.
• Small businesses report that more than 60% of revenue growth is tied to Instagram ads.
• Mobile app advertisers aim for CPI targets below $2.
• Nonprofits use Instagram primarily for awareness, with competitive engagement costs.
• Brands that refresh their creative and diversify formats maintain higher ROI.

Frequently Asked Questions (FAQs)

Conclusion

The data affirms that Instagram remains a strategically vital ad platform. With CPMs trending higher and conversion rates hovering around 1% to 2%, advertisers must balance cost, creative quality, and audience relevance more than ever. Formats like Carousels, Reels, and influencer-driven content continue to outperform simply deploying static images.

Across industries, especially retail and e-commerce, Instagram ads deliver measurable ROI, provided campaigns are designed for mobile-first, intent-driven outcomes. As competition rises and performance benchmarks evolve, advertisers who test, optimize, and refresh will likely stay ahead. Dive into the full article to leverage the latest benchmarks and plan your Instagram ad strategy for 2025 and beyond.