Instagram or YouTube! Which Platform Generates More Revenue?

Kokila Chokkanathan
When comparing revenue, it depends on perspective — whether you’re looking at total platform revenue, ad revenue, or creator earnings. Both instagram and YouTube are among the top money‑making platforms in the world, but they make money and pay creators in different ways.

📊 1. Total Platform Revenue — YouTube Leads as of 2025

🔹 YouTube’s overall revenue (ads + subscriptions) surpassed $60 billion in 2025, including earnings from ads, Premium subscriptions and related services, making it one of the biggest revenue generators for Google/Alphabet.

💡 YouTube’s revenue scale places it significantly ahead as a standalone business unit within Alphabet, illustrating the power of video ads and subscriptions worldwide.

💰 2. Instagram’s Ad Revenue — High, Often Higher Than YouTube’s Ad Income

📌 Reports based on court filings from Meta (Instagram’s parent company) indicate that in certain years Instagram’s advertising revenue exceeded YouTube’s ad revenue:

  • In 2021, instagram generated about $32.4 billion from ads, compared with YouTube’s $28.8 billion in the same period.
  • Instagram’s ad revenue growth has historically been strong, with figures higher than YouTube’s in multiple years (2019–2021), owing in part to how Meta monetizes content without sharing as much ad revenue with creators.
👉 Key reason: Meta keeps more of the ad money on instagram because it doesn’t pay creators a large share of advertising revenue like YouTube does.

🎯 3. Platform business Models — Fundamental Differences

Aspect

YouTube

Instagram

Primary Revenue

Ads + Subscriptions (YouTube Premium)

Ads (Reels & feed), shopping, brand deals

Creator Revenue Share

Yes — shares ~55% ad revenue with creators

Minimal direct revenue share; creators earn via brand deals

Subscription Revenue

Significant (Premium, Music, TV)

Smaller/limited native subscriptions

Video Views & Engagement

Long‑form and short‑form (Shorts)

Short‑form oriented (Reels, Stories)

Total Platform Revenue (2025)

> $60 billion

Not publicly broken out, but high ad revenue recorded historically

  • YouTube’s model includes subscriptions and ongoing video search traffic, which supports sustained revenue.
  • Instagram also earns huge ad money, especially from Reels and Stories, but much of the creator revenue comes from brand partnerships and external deals rather than direct platform payouts.
🎥 4. What This Means for Creators

✔ YouTube Creators

  • Earn directly from AdSense, channel memberships and Premium revenue share.
  • Videos can generate long‑term income, even years after posting.
  • Payouts are consistent once monetization requirements are met (4,000 watch hours, 1,000 subscribers).
✔ Instagram Creators

  • Often earn more from brand deals and sponsorships, especially in fashion, lifestyle, and short‑form content.
  • Direct platform payout options (like Reels bonuses or subscriptions) are smaller compared to YouTube’s ad share.
  • Instagram can sometimes feel easier for quick brand collaborations with smaller follower counts.
💡 Creator earnings vary widely, and some niche creators may earn more on instagram via sponsorships, while others earn more steadily on YouTube via ad revenue and diversified monetization.

🏆 So, Who Makes More? — Quick Summary

🔹 Overall platform revenue:

  • YouTube is one of the biggest revenue‑generators globally with ~$60 billion+ in 2025.
🔹 Ad revenue comparisons (historical data):

  • Instagram’s advertising revenue has outpaced YouTube’s ad revenue in certain years — e.g., $32.4 billion vs $28.8 billion in 2021.
🔹 Creator monetization:

  • YouTube generally pays more direct platform revenue shares.
  • Instagram often offers faster brand partnership earnings for many influencers.
🧠 Bottom Line

  • As a company/business unit: YouTube is bigger in total revenue in recent years, especially with subscriptions added.
  • Ad revenue alone: instagram has sometimes outpaced YouTube’s ad revenue and remains a top ad platform.
  • For creators: YouTube usually offers more direct payout opportunities, while instagram excels in brand deal‑driven income.
 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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