More than just pretty pictures
If you were one of the first businesses to join Instagram, then you've seen firsthand how the algorithm has shifted. Organic reach is down, ad costs are climbing, and it's more challenging than ever to be heard over all the noise.
While that’s bad news if you’re relying on free traffic and conversions from your existing followers, it opens up a whole new revenue stream for savvy advertisers.
Instagram has become a discovery platform. People stumble upon companies, brands, and products that they’ve never seen. The picture-friendly, light-hearted format feels like a soft sell, making users more likely to convert.
Almost a third of Instagram users have purchased from a company that they discovered on the platform.
Instagram stats you need to know
The first Instagram photo was posted in July 2010, and the platform has grown tremendously since then.
Here’s a glimpse of what Instagram is today:
- There are 1 billion active users worldwide
- 22% of them log in to Instagram at least once a day
- 71% of users are under the age of 35
- The number of male and female users is nearly identical
- 500 million people use Instagram Stories every day
- Video posts are increasing 80% year over year
- 60% of Instagram users seek out and discover new products and brands on Instagram
Should you advertise on Instagram?
If you’ve been reading carefully, you would have noticed that even though 60% of Instagram’s user base is actively looking for new products and services, only about 30% have made a purchase.
This statistic tells us that there is a fantastic opportunity for brands to capitalise on people’s desire to conduct business with brands on Instagram.
But, does that mean that this advertising platform is right for you, especially if your company is based in Brisbane, Gold Coast, or Melbourne?
The short answer is that you should be advertising on social media platforms where your ideal customers “hang out.” When Instagram wasn’t as widespread, then we might have recommended that our clients proceed with caution. If their user base weren’t on Instagram, then it wouldn’t make sense to spend ad dollars there.
However, Instagram has become mainstream, and it’s an ideal medium to communicate a brand’s offerings. Stories and videos are popular consumption formats, and stories are a genuine and authentic way to share brand messages while encouraging conversions.
Types of Instagram Ads
Depending on your audience and brand, we might start with one type of ad, or utilise all four.
Visually striking imagery and an engaging caption make these ads a success.
As users prefer to consume more video content, these 30-second snippets are reminiscent of television advertising. Now, however, you can target specific demographics for the most efficient ad spend.
Want to convey your message with multiple images? A carousel ad can accomplish this.
These full-screen ads are an effective way to reach an audience that is interested in a more organic brand experience.