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Instagram is growing less than expected: the reasons for what is happening

According to the new report published, the growth of Instagram users dropped for the first time to single-digit percentages, due to this also the competition of Snapchat and TikTok

According to the new published report, the Instagram user growth dropped to single digit percentages for the first time. The data published by eMarketer show that the Instagram user base grew 6.7% in 2019, down from 10.1% in 2018. As of 2020, eMarketer estimates that Instagram can grow slower than previously expected: ?Growth will be 4.5% in 2020, revised from 5.4% and in 2021 it will be 3.2% instead of 4.1%. Contributing to the slower overall growth of Instagram is the fact that the older age groups are not joining the platform as quickly as expected.

Snapchat and TikTok competition

In addition to the older age groups that don't join Instagram, eMarketer attributed slower than expected user growth the increase in competition from Snapchat and TikTok. An area where Instagram is making bigger than expected earnings for US users aged 25 to 34. However, growth among this demographic should not change substantially in the coming years. Although none of it is extremely positive, Instagram is expected to maintain its position as the second most used social media platform in the world behind Facebook in the end.

Instagram, however, advertising will continue to increase

Slow user growth is not expected to impact advertising revenue, as eMarketer does estimates that revenue will continue to grow at high double-digit rates: We expect the social media platform to generate $ 9.45 billion in advertising revenue in 2019 and increase by 46.6% to $ 13.86 billion in 2020. The announcements recently introduced in different parts of the app, such as the listing Find out, they open up more inventory for advertisers. Purchasable ads are currently in beta on the platform, but we expect that they will play an important role in future growth.