Out of all the social media networks, Instagram outshines the rest when it comes to having a passionate and highly engaged user base.
A number of research said that users of Instagram “like,” “comment” and “re-gram” at a rate of 3.1 to 4.2 percent.
On the other hand, posts from Facebook and Twitter have engagement rates that measure .07 percent and lower.
With that being said, it’s no wonder why companies who are looking into increasing their advertising reach are interested to tap into the growing Instagram audience base. In recent months however, the social network had been constantly updating its terms of service in order to keep it aligned with the current demands particularly with those who are more inclined to the business side of social media posting.
Early in September 2015, Instagram revealed on its Business blog that it will be introducing major changes in the company’s advertising business. These will include allowing both small and large advertisers to run campaigns on the network; making Instagram ads available in more than 30 countries with a global launch to be completed towards the end of the month; allowing advertisers to show 30-second video ads which is longer than the previous allowable time of 15 seconds; the ability to use a landscape format for the ads; the creation of a new buying option for advertisers known as Marquee; and enhanced call-to-action features of advertisements by adding buttons such as Shop Now, Install Now, Sign Up and Learn More.
A separate research from eMarketer reveals that in a span of three years, Instagram will become more competitive against rivals such as Twitter, Tumblr and Pinterest in terms of popularity. By 2019, it is estimated that 33.6 percent or 111.6 million of Internet users in the U.S. will be active Instagrammers.
The company also predicted that Instagrams’s mobile ad revenue will outpace Google’s by 2017 at the rate of $10 million more.
Recent data wherein 100,000 brands were analyzed by Shareablee, a social analytics company, showed that compared to Facebook and Twitter, customer actions in Instagram is actually three times higher.
When thinking about advertising in Instagram, there are certain advantages and disadvantages that should be taken note of. One notable advantage is that Instagram advertisers are able to gain access to the huge array of targeting data found on Facebook, its mother company. This would give them a number of options for Instagram targeting such as geos, demos, interest lists, custom audiences and behavioral targeting.
Another advantage is that Instagram’s campaign hierarchy and bidding algorithms are all aligned with Facebook’s. This makes it very convenient for media buyers who are otherwise not keen on learning a new system specifically during the year’s last and busiest quarter period.
However, Facebook targeting, while extremely valuable, doesn’t have any Instagram-specific targeting at the moment. This in turn denies brands from targeting ads to keywords or hashtags that are specific to Instagram nor can they target such to followers of their Instagram profile.