How Does Instagram Make Money?
Instagram makes money primarily through advertising revenue and sponsored posts. The company also offers premium services to business accounts and recently implemented a feature that allows users to purchase products directly from the app.
Advertising Revenue
Instagram’s primary source of revenue is advertising. The company offers a variety of ad formats, including photos, videos, stories, carousels and shopping ads. Instagram’s ads are powered by Facebook Ads Manager, so businesses can use the same tools to manage their campaigns on both platforms.
Sponsored Posts
Instagram also makes money through sponsored posts. This is when businesses or influencers pay Instagram to feature their posts on the platform. Instagram takes a percentage of the fee and the rest goes to the influencer or business.
Premium Services for Business Accounts
Instagram offers a variety of premium services to business accounts. These services include analytics, access to influencers and more. Businesses pay a monthly fee for access to these services.
Instagram Shopping
Instagram recently implemented a feature that allows users to purchase products directly from the app. This makes it easier for businesses to sell their products on Instagram, and it also generates revenue for the company.
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