Instagram could use a few more likes.
The social media giant’s U.S. user growth rate dipped to 6 percent in 2019, the first time it’s hit single digits, according to a report in eMarketer. That’s down from 10 percent the year prior. The website also notes that Instagram’s growth rate could grow at a slower pace during the next two years, dropping to roughly 4 percent in 2020 and 3 percent in 2021.
That could be because older age groups aren’t joining the platform as expected. That's despite the lion share of users being between the ages of 25 and 34. There’s also increased competition from platforms like TikTok, which has exploded into popularity since 2017. Global downloads outpaced that of Instagram and Snapchat, according to mobile-data firm App Annie. It had a 665 million monthly active users in October.
Instagram is still wildly popular in the United States. In fact, it’s “the second-most internet-penetrated platform in the US behind Facebook,” its parent company, per eMarketer. “We expect it to maintain its position with a good gap from the rest of the platforms.”
Plus, while TikTok contends with public scrutiny over its Chinese ties, Instagram’s revenue keeps ticking up. It generated around $9 billion in ad funds in 2019 and that could grow 46 percent to nearly $14 billion in 2020. In terms of overall revenue, the platform brought in $7 billion in U.S. dollars in 2018 and was projected to bring in $14 billion this year.