Instagram’s estimated worth more than $100 billion USD

The app could surpass $10 billion in revenue in the next 12 months.

Instagram app on Android

Instagram has come a long way in the last six years.

Facebook acquired the popular photo-sharing app for $1 billion USD back in 2012. At the time, the app had 50 million users across iOS and Android. Last week the social network hit 1 billion monthly active users and now Bloomberg estimates the service is worth more than $100 billion USD.

Bloomberg Intelligence analyst Jitendra Waral wrote in a report that the extra users would likely help push Instagram’s revenue passed $10 billion over the next 12 months.

Additionally, the social network is gaining users faster than Facebook. Currently the photo-sharing app is on track to pass 2 billion users in the next five years. While Facebook is already passed that point, its growth as slowed in western markets. Furthermore, Instagram’s audience is younger, making it a more appealing target for advertisers.

Bloomberg also estimates Instagram will account for 16 percent of Facebook’s revenue over the next year. This is up from 10.6 percent last year.

Most of Instagram’s revenue for this year will come from feed ads and not from it’s newest platform, IGTV. Instagram launched the new video platform last week. IGTV is the social network’s answer to Snapchat Discover and online video titan YouTube.

IGTV has a unique focus on vertical video — something only Snapchat Discover has really done — and a more personal approach when compared to YouTube. Creators can post up hour long videos on IGTV, with video being the central focus. When users launch the app, video starts playing immediately. Users can swipe through featured videos and search for creators they like.

While there’s no solid revenue model for IGTV yet, the app is still developing. Assuming IGTV gains traction — it likely will since there’s quite a large userbase to draw from — Instagram will implement some form of advertising model. What that looks like isn’t clear yet, however.

Regardless, Instagram will continue to grow as it draws in more and more users.

Source: Bloomberg