The Positive Correlation Between Instagram User Base and Ad Spend

Instagram app on a phone

The Positive Correlation Between Instagram User Base and Ad Spend

Despite being less popular than Facebook, Instagram is much more appealing to a younger demographic as it offers content that is refreshing as well as stimulating.  The social media app climbed beyond the billion-user mark just this last June and continues to grow. At the same time, a significant amount of advertising dollars are being invested into the channel from marketing departments who favor Instagram over Facebook.

Ad Spend Influencers:

What is occurring here is no coincidence. Those who are emphasizing the importance of digital marketing efforts through this social media channel are individuals that recognize not only the growing trend in popularity relating to Instagram but also the dedicated development team responsible for the ongoing improvements that are implemented to the app.

Instagram Development Team:

Over the past year alone, there has been a fierce number of improvements made to the core experience of Instagram as well as the content it delivers users such as the now-popular Stories feature. This, along with user numbers surpassing one billion, has advertisers drooling over the prospect of marketing their product or service in this way. Among the companies who said they used Instagram advertising, half of those stated that these efforts were the highest company priority of all. This is according to a survey conducted by Reveal Mobile, a location-based marketing platform. Although, as mentioned previously, the largest force driving the increase of ad spend is the exponential growth in young app users.

Innovative Content:

Drawn to the platform by less controversial content, these people are looking to avoid the negativity that can often come along with Facebook content and are ready to reward advertisers with a high level of engagement. In addition to the audience demographic being young and on the rise, these users are ready to become involved with content through various types of engagement such as clicks, likes, comments, shares, and more.

Interactive Audience:

While e-commerce brands see the most engagement on Facebook, similar profiles on Instagram receive about the same amount of interaction but are outperformed by both Beauty and Fashion profiles. These profiles with high engagement are those that create engaging, memorable and fun advertising campaigns. Many do this through the mobile first and full-screen ad format that Instagram Ad Stories offer and see conversion rates as high as three times what they saw through Facebook News Feed Advertisements. Hopper, a travel planning app that invested 50% of it’s Instagram ad spend on Stories, saw a 67% increase of app installations.

 

Aidan Kelleher
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