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Instagram Reels could drive $2.5 billion in yearly ad revenue by 2022 - Business Insider

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Instagram Reels could drive $2.5 billion in yearly ad revenue by 2022, according to Jefferies analysts. Here are 5 key takeaways from their report on the TikTok rival.

as a potential revenue driver.

And in a research note distributed Sunday, Jefferies analysts put a number on Reels' money-making potential, estimating the feature could add $2.5 billion or more in incremental yearly ad revenue for Facebook by 2022. In the note, the analysts Brent Thill and James Heaney articulated how they believe advertisers will use Reels to reach a younger audience while "still leveraging FB's best-in-class ad targeting.

While TikTok-first creators tended to be unimpressed, Instagram influencers said they were experimenting with the feature and saw potential, especially for brand deals.

 

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