Instagram Marketing: What does Instagram’s New Ad Business Means for Brands? - 4 minutes read


By incorporating external links like "Buy Now" and "Learn More" within Instagram's current interface, Instagram recently launched a new advertising solution to assist firms in increasing the effectiveness of Instagram-based marketing.

A new application programming interface (API) that supports a larger range of advertising is part of the launch. Profiting from Facebook's ongoing technological advancements, the new advertising venture also pushes sponsored content pertaining to user-specific interests. What does this imply for brands, though?

According to a report by Adweek on Instagram's new ad business, brands are given a more precise view of the audience their sponsored posts are reaching. Written by Garett Sloane.

The main goal of the ad design has been to provide tailored commercial material that fits as naturally as possible with the rest of the users' photo feeds while minimizing experience disruption.

The sponsored posts on Instagram will be created by a user's Facebook interests using the same tech stacks that power Facebook's suggested posts and pages, encouraging brand loyalty across both platforms.

Additionally, since users can create their own visual identities and branding on Instagram, which is an image-based network, it has proven to be a vital tool for both emerging and well-established firms. But there weren't many options to turn Likes and Follows into new clients and customers due to the absence of an external link connection.

In an op-ed piece for Highsnobiety, Alec Leach questioned the importance of Instagram marketing:

While Follows and Likes may help propel brands to the forefront of the fashion conversation, without ideas, narrative, and a compelling foundation they will not have more than two minutes of fame.

He has a point: The importance of concept cannot be stressed enough when it comes to any marketing platform. His argument, however, underestimates the potential that Instagram’s new integrated advertisements offer in terms of increasing conversion rates.

Given the upward growth in the eCommerce industry, two minutes of fame is an increasingly important landmark for translating Followers into customers. Whereas Likes and comments are the current metrics of community reach, Instagram’s new model offers a new quantitative measure for social media engagement: Sales.

A milestone for converting followers into customers, two minutes of fame is becoming more and more significant given the upward rise of the eCommerce sector. The current indicators of community reach include Likes and comments, but Instagram's new model introduces a new quantifiable statistic for social media engagement: Sales.

In turn, these sales enhance the demand for brands to work with influential social media users. Over the previous ten years, high-traffic websites have been the top destinations for marketers; today, Likes and Followers are the new Page Impressions.

Integrated marketing underlines the significance of social media influencers even more: cultural tastemakers are the cornerstone of social media marketing since they foresee future trends and identify current ones.

Brands are about to have a lot of interest in social media clout. Cher and Willow Smith's choice to front Marc Jacobs' high-end advertising campaigns was well-considered given their combined 6.36 million Twitter followers and exceptional interaction with numbers. Brands do not, however, require funding for red carpet honorees, and for many, there are more effective promotional options outside of the A-List

According to Instagram, there are 300 million monthly active users who upload 70 million photographs on average each day. Influencers on Instagram are equal parts lifestyle experts, brand ambassadors, and—most recently—sales agents thanks to carefully selected content and a keen eye for what is popular.

Influencers offer a selection of the best-of-the-best photographs since consumers don't want to trawl through thousands of photos every day. As a result, both emerging and established firms wishing to take advantage of Instagram's new ad business would benefit from being highlighted on a prominent user's social media page.

Influencers' areas of expertise give brands a more specialized and regulated advertising solution. Instagram influencers fall into a variety of aspirational categories that are purely consumer-driven: Instagram influencers represent what customers want to see and be, from health and beauty advice to specialized diet plans and new fashion trends.

As a result, a captive market of buyers who want to imitate influencers' lifestyles through the use of products is created.

The method was developed by Instagram's ad company. It starts with a simple linkage between a brand and an influencer, which transforms an unknown product into an aspirational product. Finally, Instagram's integrated external links close the deal and close the sale.

Influencers and tech-driven advertising solutions are likely to increase for firms from this point on. As more advertisers use Instagram's sponsored content feature, more specialized markets will form around influencers.

Advertising solutions concentrating on easing the process of pairing businesses with suitable influencers will be fueled by the ensuing increase in Instagram marketing. Brands should take note: Instagram's advertising platform has transformed user feeds from mood boards to marketplaces, and the market is now open for business.