If Nomura's numbers prove accurate, the compound annual growth rate of revenue for Instagram Stories over the next few years will be even greater than that of Facebook's mobile revenue between 2013 and 2016.
Nomura's predictions for revenue growth of Instagram Stories as compared to Facebook's mobile revenue from 2013 onwards.Kelley added:"We've also heard anecdotally from advertisers that budgets continue to grow at the corporate level, with spend being reallocated to Stories rather than Feed, and early feedback has been positive."
The vote of confidence will be a welcome piece of good news from Facebook, which has faced a difficult two years from a public relations perspective. It has lurched from scandal to scandal — one month being implicated in the spread of hate speech that fueled genocide in Myanmar, the next admitting a hack of tens of millions of users' sensitive data.
But Nomura suggests that Facebook is now at a point of scandal fatigue, with crises failing to do much damage:"On the whole, we do think the negative headwinds have largely been exhausted, with little reaction to negative press as of yet."Contact this reporter via Signal or WhatsApp at +1 636-6268 using a non-work phone, email at rprice@businessinsider.
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