Instagram will soon make up half of parent company Meta’s advertising revenues in the United States.

The photo-and-video-sharing app will exceed $32 billion in U.S. ad revenue next year, Bloomberg reported Wednesday (Dec. 18), citing data from Emarketer. That’s a 24% increase from this year.

Meta’s emphasis on video content has been a key driver of that growth, Jasmine Enberg, principal analyst at Emarketer, said in a blog post.

“Instagram is now a video-first platform, with users spending close to two-thirds of their Instagram time watching videos,” she wrote, per the report.

The findings further establish Instagram’s role as a critical source of growth for Meta, perhaps the most important part of the tech giant’s business, the report said. Not only does it bring in revenue, it provides competition to rivals such as TikTok and X thanks to features like Reels and Threads.

Meta has said that Reels and its short-form videos account for more than half of the time that users spend on the app, per the report.

Its revenue generation powers have been steadily growing, the report said. In 2021, Instagram generated $32.4 billion worldwide, or 27% of Meta’s total sales. In early 2022, Instagram produced nearly 30% of Meta’s global business.

In an Oct. 30 earnings report, the company said its total advertising-related revenues came in at $39.9 billion in the third quarter, compared to $33.6 billion in 2023. Ad impressions rose 7% year over year, although those growth rates were as high as 21% a year ago.

It was reported last month that Meta was planning to add advertising to Threads, however, a Meta spokesperson issued a statement to PYMNTS that seemed to contradict those claims.

“Since our priority is to build consumer value first and foremost, there are no ads or monetization features currently on Threads,” the spokesperson said.

Meanwhile, Meta is adding artificial intelligence and translation capabilities to its Ray-Ban smart glasses.

“Live AI” lets the glasses see and discuss what users are seeing in real time, offering tasks without requiring the “Hey Meta” wake phrase for follow-up questions. Meta is also adding a Shazam integration for U.S. and Canadian users, letting them identify songs by asking, “Hey Meta, what is this song?”