Digital Media Economy and Social Media:A Case study of Instagram

The growth of the digital economy is driven primarily by the rapid advancement of technology and the widespread use of the Internet, which has revolutionized the way economic activities are conducted. Among the digital platforms contributing to the digital economy, social media has emerged as a powerful player. Instagram, a photo and video sharing platform launched in 2010, has evolved into a major tool for content creators, influencers, and businesses. Since its acquisition by Meta in 2012, Instagram has developed a business model that relies primarily on advertising, online shopping, and data analytics as its major revenue sources. This paper presents a case study to explore the revenue generation model of Instagram, one of the most popular social media platforms, and its significant contribution to the digital media economy.This research also emphasizes Instagram's growing role in the digital economy, showing how the platform serves as an attractive tool for influencers and small businesses, as well as contributing to Meta's financial success. According to the research, Instagram is likely to remain a significant force in the digital media landscape, opening up new avenues for generating income in the future. All of Meta's financial records are only accessible through publicly accessible data, and the study depends on secondary data.The study shows that ads remain the biggest source of income for Instagram, accounting for a large portion of Meta's total revenue. Instagram's auction-based advertising system allows brands and influencers to target specific audiences, while the platform generates additional revenue through its shopping feature, allowing businesses to sell products directly through the app. In addition, the data analytics provided by Instagram help businesses optimize their strategies and ad spending.