Instagram recently revealed that, in addition to their 600 million monthly active users, they now have eight million active business profiles and one million monthly active advertisers. Many marketers may have read about this milestone in the trades, briefly taken note, and moved on. But when you drill down into what this means for marketers and brands, it’s significant. Why? Three reasons!
1) Instagram is Experiencing Explosive Growth
A little over a year ago, the app had just 200,000 advertisers, six months ago they had 500,000—today they have 1,000,000. Imagine if your client base grew by 50% in 6 months! Their advertisers are also more diverse: consumer goods, e-commerce, retail, and technology firms are tapping into consumers’ passions and interests through the social media platform.
2) Instagram is Now Pay To Play
Instagram’s algorithm has significantly reduced a brand's organic reach. Researchers found that interactions on organic posts declined by 30% year-over-year, even when the brands were posting more frequently. Although brands may now have to allocate more to their budget, Instagram’s targeting capabilities and variety of ad types allow brands to reach scale and drive awareness, consideration, and conversion.
3) Instagram Ads Are Effective
Sixty percent of people say they discover new products on the social media platform, and three quarters of people say they take action after they’ve been inspired. In the past month, over 120 million Instagrammers have used the platform to visit a brand website, get directions, or contacted a company via direct message, email, or phone. Recognizing this, later this year, Instagram will soon roll out a new feature to make it easier for users to book services and make reservations via the app.
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Sources: MarketingLand Instagram Now Has More Than One Million Advertisers, L2 Instagram Hits A Million Advertisers