Instagram says that it now has 500,000 advertisers on its platform. “Today, we’re excited to announce there are more than 500,000 advertisers growing their businesses on Instagram,” they said in their blog announcement. “In just six months, the number of advertisers has more than doubled. And that includes a variety of businesses from around the world. In fact, the top five countries seeing advertiser adoption are the US, Brazil, UK, Australia and Canada. Businesses have been an important part of the Instagram community since the beginning. Here’s why Instagram continues to be an essential place for businesses to grow.”
The Instagram community is more than 500 million strong, so it’s not surprise that consumer targeted marketing is taking off on the platform. What businesses like is their ability to become part of the consumer engagement experience, not just an advertiser butting into the conversation.
Instagram Working for Business?
Instagram noted that 50% of “Instagrammers” follow a business and their surveys indicate that 60% of Instagram users say they learned about a product or service on Instagram. They view their platform as passion marketing which businesses can tap into.
These findings fall in line with results from our studies on consumer behavior. In a study we conducted last fall, we found that 45% of consumers stated they would use social media to help them find information on a local product or services. In the same study, 39% stated they would use social media apps in-store to help them make decisions. This number was 51% for 18-24 year olds. This includes using sites like Instagram.
They say that 75% of their users take action after being inspired by a post. Actions include clicking to a website, searching, shopping or telling a friend. There have been 1 billion actions taken on their ads just in the last 12 months since Instagram ads were launched. Internal surveys show that 70% of ad campaigns received “significant lifts” of online conversion or mobile app installs. Since Instagram made change to their link ad format in June, they saw ad performance increase by 45%. Additionally, an Oracle Data Cloud report concluded that Instagram ads drove a median 1.8% lift in in-store sales and a 2.1% lift in household penetration, across 12 US CPG campaigns that were measured for potential sales impact.
Tools For SMBs
With the help of new Instagram Business Tools, it’s never been easier for businesses to find new customers and make meaningful connections with people who care about their businesses. In the two months following its launch, more than 1.5 million businesses converted to a business profile. For the first time on the platform, businesses had an easier way to connect with customers through business profiles, learn what resonates with their audience through insights, and promote a post from within the app.
This trend is not going away. In our most recent update to our Local Pulse Report™, we found the area of social media is the top area SMBs feel will have the most impact on their businesses over the next 2-3 years. This bodes well for Instagram and others.