advertising

When social becomes profitable: How Instagram is empowering businesses

After reaching more than 800 million monthly active users in 2017, Instagram has turned into the social media El Dorado. This has made a substantial impact on businesses that rapidly understood the power of the platform for advertising. In fact, Instagram recently estimated the business community to represent 2 Million advertisers (up from 1 million back in March).

Here are some of the key elements behind Instagram's marketing success:

1. Instagram traffic VISITS HAVE HIGHER QUALITY

Visitors from Instagram stay on a site for an average of 192 seconds – this is longer than visitors from any other channel, including Facebook, Pinterest, and Twitter. This also means that traffic from Instagram is the most engaged and represents a more attractive consumer panel (Yotpo 2017).

2. Instagram has high organic and targeted reach

The organic nature of Instagram’s audience increases the word-of-mouth effect. According to a recent Yotpo research, 83% of consumers confirmed that seeing a post about a brand on Instagram influences their decision to look the brand up.

In addition, with the current available tools, businesses are now able to leverage this instagram audience even more by targeting specific segments (by age, country or even interest).

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3. Instagram's hashtags(#) simply work

Not only do hashtags enable categorisation and content discovery, they are also the driving forces behind most of the user-generated advertising campaigns. According to Sproutsocial, "One of the best ways to kick off a UGC campaign on Instagram is with the help of a branded hashtag" in order to optimise exposure. This is also why 7 out of 10 hashtags used are branded (Simply Measured Study).

4. Instagram enables shoppable solutions

Instagram shopping is real. The platform is providing increasingly more links and solutions to connect user generated content to e-commerce websites within the application.

  • Instagram stories

By introducing the swipe up option in Instagram stories, direct product referrals are possible, creating a direct linkto an e-commerce website within the platform.

  • Shoppable third-party solutions

Companies such as Curalate are also providing solutions to turn your Instagram feed into a shoppable feed. Again here, a direct link within the platform makes instagram scrolling and buying a natural consumer path.

  • Shoppable tags

Last but not least, Instagram recently developed it's own shoppable posts, currently only available for businesses in the United States using the Big Commerce platform. The tool is simple: retailers can insert shoppable tags on their Instagram pictures featuring a product to get the Instagram user directly to the store.

This add-on is another proof that Instagram is slowly shifting towards a key selling tool for retailers, something to keep an eye on in Europe as well! 

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What's more, Instagram is estimated to rake in $4 billion in global advertising revenue by the end of 2017, an impressive growth prospect! 

Influencer Marketing, why?

Marketers love influencer marketing because it takes the brand out of the equation. Instead of filtering the message through a brand’s lens, the influencer makes the product or service his own. We've seen three challenges that will push more brands, agencies and institutions towards the influencer marketing realm:

1. The Rise of Ad Blockers

In the US, more than 32% (Europe > 20%) of all internet users have an Ad Blocker installed. Making online advertising increasingly more inefficient. At the same time, 92% of consumers trust user-generated content and word-of-mouth more than advertising and 74% rely on social network to help guide a purchase (eMarketer).

2. There's a push towards influencer marketing, but it's a time-consuming and expensive ordeal.

  • Finding the right influencers for your target audience on the right platform;
  • Managing contacts with influencers and negotiating contracts cross-state/country;
  • Accurately measuring the effectiveness of the content;
  • Managing workflow around influencer marketing solutions;

3. Fragmented landscape

Brands have to contact numerous different types of agencies, tech companies and services to run simple, straightforward campaigns. There’s no efficient full suite solution for running influencer marketing campaigns across different countries.

Influencer marketing, why?

The broader digital advertising industry represents a $14 billion revenue opportunity and is expected to see double-digit growth over the next five year (Forbes). With 84% of brands planning to launch an influencer marketing campaign in the next 12 months, the interest in influencer marketing continues to grow as brands seek the most effective way to target their core audience.

If social influencers didn’t add value to an organization, 84 percent of marketers would look elsewhere for their campaigns.

Pia Muehlenbeck x Lekker Bikes

Summer Cruising with Pia Muehlenbeck x Lekker Bikes 

Pia is one of Australia’s most recognised social influencers. With over 900,000 followers and an engagement of over 9,200,000 likes, her travels and adventures documented by the multi-award winning Creative Director Kane, are followed by their fans globally through social media channels.