With eight million companies now using a business profile, the Facebook-owned company believes new features such as Instagram Stories have contributed to the rise in Instagram advertisers.
Alongside the new figures, Instagram disclosed its biggest regions for growth were the US, UK, Russia, Brazil and Indonesia. Current trends show 80 per cent of those using Instagram follow a business of some sorts.
Explaining why he joined the ranks of Instagram advertisers, Trakke founder Alec Farmer said: “Our brand is all about inspiring people to be adventurous and Instagram provides a great visual platform for us to do just that.
“It’s often the first step in the journey of our customers discovering our brand so our Business Profile helps us interact with people easily and drive traffic to our site.”
Farmer said he and the business use Instagram ads to highlight current campaigns and “carefully target” likely customers.
Instagram, which was acquired by Facebook for $1bn in 2012, launched its video offering – Instagram Stories – in August 2016. Figures released in January 2017 showed the offering was producing 150m daily user hits – with growth set to allow for the roll out of ads in this format.
The growth of Instagram advertisers has largely taken place during the last 12 months – from 200,000 in March 2016 to one million today. Over 600m people worldwide use Instagram every single month. with 400m using it every day.
Alannah Wood, digital marketing at online art retailer King & McGaw, said: “Instagram has become our fastest growing revenue generator. Since advertising on Instagram, we’ve dramatically increased engagement and achieved a 10.9x return on ad spend. This year alone our followers have grown by 36 per cent, which we’ve put down to targeted advertising and the ability to easily find people who are passionate about our products.”
To help Instagram advertisers, the platform created an Insights function to provide perspectives on followers. Matcha brand Matchaeologist discovered a significant number of its followers were based in Hong Kong and Taiwan – not the UK – leading to publishing of posts earlier in the day to cater for this audience.
A report produced by TapInfluence earlier in March found that social media influence marketing is 11 times more effective than banner ads. Meanwhile, a 2016 study from Markerly highlight the impact so-called “micro-influencers” could have on Instagram. Influencers with fewer than 1,000 followers have a like rate of about eight per cent, the research concluded, while those with 1,000 to 10,000 followers have a like rate of four per cent.
Future plans include adding insights data around multi-image posts and Instagram Stories.
Interesting in Instagram advertising? Find out how an Anglo-Swedish watch brand is using influencers on the social media platform to grow.
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