[Infographic] The Evolution of Instagram Ads

Since its launch in 2010, Instagram has transformed into one of the world’s key marketing channels, with over 2.4 billion monthly active users as of 2024. No longer just a social media app, it’s a cornerstone of brand visibility and plays a key role in product discovery and consumer engagement.

Businesses across industries have recognized Instagram’s power to influence purchase decisions and foster loyal communities. Instagram continues to deliver engagement for brands, with 90% of users following at least one business, and 87% of users say they take action after seeing a product on Instagram. Innovative formats like Reels and Stories, AI-powered discovery, and refined ad experiences have transformed the platform for both users and advertisers.

Instagram’s success wasn’t just a matter of timing or luck. It was a result of strategic design, relentless focus on user experience, and forward-thinking innovation. Instagram has continuously adapted to meet the evolving expectations of consumers and brands alike.

In 2024, Instagram generated an estimated $70.9 billion in ad revenue. With video content consumption surging and new AI-enhanced features, analysts expect continued growth through 2025.

The evolution of Instagram reflects over a decade of intentional design, innovation, and marketing integration. Instagram is an essential platform for businesses working to reach engaged, mobile-first audiences.

The Evolution of Instagram Ads

A long infographic showing the history of Instagram as an ad product. This information is available in the text below the graphic.

Instagram’s history by the numbers:

2010: Created by Kevin Systrom and Mike Krieger, Instagram is the first photo-only social platform.
December 12, 2010: Instagram has 1 million users.
April 9, 2012: The Acquisition. Facebook buys Instagram for $1 billion dollars.
July 26, 2012: Instagram has 80 million users.
November 5, 2012: No longer just for mobile viewing. Instagram rolls our profiles for web browsers.
February 26, 2013: There are officially 100 million users on Instagram.
June 20, 2013: Instagram is no longer a photo-only platform. Users can now create and post videos onto their profiles.
October 24, 2013: Instagram announces sponsored posts and videos.
March 4, 2015: Instagram introduces Carousel Ads to sponsored posts.
September 9, 2015: Instagram introduces small and large ad campaigns to their platform.
February 24, 2016: 200,000 advertisers on Instagram.
March 15, 2016: Say goodbye to chronological timelines. Instagram announces a new algorithm that optimizes the order of posts on user timelines.
May 19, 2016: Instagram adds video to Carousel ads.
August 2, 2016: Instagram introduces Stories–photos or videos that can be viewed by followers for 24 hours.
August 23, 2016: Businesses start using Instagram stories to promote products, sales, and behind-the-scenes fun.
September 22, 2016: Instagram has 500,000 monthly active advertisers.
November 10, 2016: Gif with the times. Instagram adds Boomerang integration.
November 11, 2016: Instagram announces vertical photo and videos ads.
January 11, 2017: Instagram announces platform insights for Stories. Businesses will be able to see reach, impressions, replies, and exits for each individual story.
February 22, 2017: Marketers can promote up to 10 photos or videos in one ad.
March 1, 2017: Instagram Stories ads now available for all businesses globally.
March 22, 2017: Instagram has 1 million monthly advertisers.
April 13, 2017: 200 million people are using Instagram Stories.
April 26, 2017: Instagram has 700 million users.
May 25, 2017: Instagram announces new objectives for Stories Ads. They include Video Views, Traffic, Conversions, and Mobile App Install.
July 26, 2017: Instagram announces 15 million business profiles.
September 25, 2017: Instagram has 2 million monthly advertisers.
September 26, 2017: There are 800 million users on Instagram.
October 3, 2017: Instagram introduces Polls into Stories.
March 2018: Released shoppable posts for businesses, making normal posts into ad-like posts.
June 2018: Collection ads were introduced, allowing businesses to advertise multiple products within one ad unit/post.
August 2018: Automated ad creation and placement tools expanded through Facebook’s AI, promoting smart creative optimization for story and feed ads.
September 2018: Vertical video introduced in IGTV, sponsored IGTV content was slowly integrated.
March 2019: Checkout on Instagram was rolled out in beta, allowing users to buy products within the Instagram app.
June 2019: Branded Content Ads were introduced, allowing advertisers to promote influencer posts as paid ads.
March–June 2020 (COVID-19 response): Allowed businesses to add gift cards, food orders, and donation stickers in stories.
August 5, 2020: Introduced Instagram Reels, and ads for Reels were beginning to be tested behind the scenes.
October 2020: Live shopping and shopping in Reels was launched for businesses and creator accounts, and a dedicated shop tab was added in the main navigation bar.
January 2021: Reels had about 500 million daily active users.
June 17, 2021: Reels ads launched, introducing full screen video ads labeled as sponsored within the Reels feed.
March 1, 2021: Live rooms introduced, allowing up to 4 users to go live together.
June 2021: Native affiliate marketing tools rolled out, allowing creators to earn commissions through brand partnerships within the Instagram app.
October 28, 2021: Instagram’s parent company rebrands as Meta.
Late 2021: Expanded ads into the Explore tab, which spread visibility beyond Feed and Stories.
December 2021: Instagram reached approximately 2 billion monthly active users.
Mid 2022: Focused on expanding Reels’ reach and usage with increased ad placements; Reels continued to grow as a key engagement format.
March 9, 2023: Instagram stopped extending new and renewed Reels Play Deals in the U.S. and India.
June 2023: Ads Manager rolled out new Commercial Music features and expanded Instagram Reels ad placements (plus additional campaign types)—signifying a broad update to Reels ads functionality.
September 7, 2023: Instagram began internally testing longer Reels of 3 minutes and 10 minutes.
2023: Ad revenue reached $39.7 billion.
February 5, 2024: Meta began testing “Ads on Profile”—allowing creators in the U.S., Canada, Australia, South Korea, and Japan to earn from ads displayed directly on their Instagram profiles.
May 26–June 13, 2024: Users on Reddit observed that the “Ads on Reels” test program ended—various reports noted June 13, 2024, as the cut-off.
June 13, 2024: Reddit users reported tests of ads overlaid on Instagram Stories, seemingly promoting Meta’s VR offerings.
July 16, 2024: Meta officially added banner-style overlay ads (single-image and carousel formats) to Instagram Reels.
January 19, 2025: Instagram officially allowed Reels to be up to 3 minutes in length, doubling from the 90-second limit.
January 21, 2025: Meta unveiled a Breakthrough Bonus program, offering TikTok creators up to $5,000 over three months for exclusive Reels, with some deals reportedly reaching $300,000 over six months.
March 9, 2025: Reddit users spotted Instagram experimenting with non-skippable “ad breaks” during Reels playback, introducing mandatory 5‑second waits.
January 2025: Revenue program for Ads on Profile officially discontinued (had been operating in the U.S., Canada, SK, Japan, Australia).
2025: Ongoing rollout of features like clickable links in Reels for verified users, AI-powered ad insights, and enhanced carousel & shoppable posts for commerce, highlighted in update guides.

Did you know that 73% of consumers now discover brands through social media? With the reach of apps like Instagram, TikTok, and Facebook, it’s easy to see why. These days, staying relevant isn’t optional—it’s essential. SOCi’s Genius Social Agent helps multi-location businesses create engaging, locally-optimized social content at scale. Harness the power of agentic AI to boost your brand’s visibility, respond swiftly, and win over your audience, wherever they scroll.

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