With Meta Platforms ( NASDAQ:META ) improving its monetizing strategy, research firm Emarketer projects Instagram to contribute more than 50% of its U.S. advertising income next year.

Instagram's emphasis on short-form video via its Reels toolwhich rivals ByteDance's TikHub and YouTube Shortscontinues driving growth. Analysts credit customer taste for interesting, bite-sized video content, which drives marketers to spend more on the format. By including more ads inside Reels, Meta is stepping up efforts to optimize ad income.

Principal analyst Jasmine Enberg of Emarketer pointed out that Instagram attracts users spending roughly two-thirds of their time watching videos. The Feed (53.7%) and Stories (24.6%) feature in 2024 helpedgenerate the platform's advertising income. Still, by 2025, its Explore, Reels, and Threads income is expected to be 9.6%.

Should a TikHub ban be implemented in the US, marketers might change their spending to Reels and YouTube Shorts. Enberg also mentioned that Instagram might take over twenty percent of the misdirected ad money. It's important to acknowledge Meta's stellar year, with it gaining 75% YTD and over 15% in the past three months alone.

This article first appeared on GuruFocus .