Instagram’s growth rate in the U.S. will fall to 6.7 percent in 2019 from 10.1 percent in 2018, according to a new report by market research firm eMarketer, the first single-digit growth for the well-known social app. And in the 2020-2023 forecast, the growth trend is expected to slow further.
Instagram’s growth in u.S. users will be revised down from 5.4 percent to 4.5 percent in 2020 and 3.2 percent from 4.1 percent in 2021, the report said. The slowdown in Instagram’s overall growth was caused by older people not joining the platform as quickly as expected.
While older users are not growing so fast, U.S. users aged 25 to 34 are growing faster than expected, at 11.4 percent. The report says it doesn’t expect significant growth in this age group in the coming years, largely because of Snapchat’s recovery and the rise of TikTok, making it difficult to ensure that Instagram continues to grow at a high rate.
“Instagram is doing very well – it’s the second-largest Internet social media platform in the U.S., after Facebook,” said Nazmul Islam, a junior forecasting analyst at eMarketer. Despite the increased competitive pressure, it should remain in second place and remain largely different from other platforms. “
In addition, Instagram’s advertising revenue continues to grow at a high double-digit rate. We expect the social media platform to generate $9.45 billion in advertising revenue in 2019 and grow 46.6 percent to $13.86 billion in 2020.