Is Instagram the Future of Paid Ads?

Posted on 27 July 2016

Is Instagram the Future of Paid Ads?

Who knows–but they sure are making a great case. “Ad-Tech Experts” say that paid advertising on the Instagram platform should reach its peak by 2017. Instagram is currently at 500 million monthly active users and 200,000 active advertisers. They also just released a new business profile feature, where 1) consumers/followers can contact brands directly, and 2) brands can turn posts into sponsored ads. Instagram is still a new platform making incremental steps towards monetization without sacrificing the user’s experience. They also recently changed the algorithm, which is comparable to Facebook’s news feed, boosting posts that receive high engagement.

My experience with Instagram is a work in progress. I’ve tested some ads, which received extremely high engagement but no clicks. Our main focus with Instagram is to build our followers and get as much organic exposure as possible. In just under two months we have built our count from 0- 7500!

IG Report Pic.png
Lots of engagement on inspirational quotes!

Conclusion

So right now, Instagram seems to be more of an opportunity for organic exposure rather than sales. As long as our followers continue to grow (around 200-250 per day), I’m completely fine with that. Once Instagram finds it sweet spot, we’ll have an audience ready.

“Two years ago we had just started to introduce advertising,” she said. “We’re five years old. So if you know any 5-year-olds, they’re just getting started.” -Marne Levine, Instagram’s COO


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