What Do Instagram Advertisers Actually Get for Their Money?

What benefits does the new Instagram advertisement feature provide for companies? As shown in the chart below, with sponsored posts, companies experienced a huge increase in average daily likes. 

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Ultimately, there is a lot of value in the number of likes a company gets. The more consumers like something, the more likely his or her friends will like it. Having a lot of likes shows credibility, ultimately strengthening brand image. However, on the other hand, because these ads do not give the company ability to post links, there is no way to directly drive sales. According to the article, “success is brand life over a period of time.” Based on the analytics, companies will be able to get a better sense of consumer opinion and purchase intent. 

I believe that with the rise of Instagram, this could be an extremely effective strategy for marketers if they target the right audience. One thing that concerns me is whether this is too much of a push strategy, almost like an “unwanted pop-up ad” on your computer.

Do you think that Instagram ads will thrive, increase positive brand awareness, and eventually increase profitability?

http://mashable.com/2013/12/02/value-of-instagram-ads/ 

 

 

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4 Responses to What Do Instagram Advertisers Actually Get for Their Money?

  1. anoymer says:

    I think Instagram is a fun tool for people of all ages and can be an effective way to build brand image, however it seems very difficult to actually track results. How will a company know the reason you decided to visit their website and purchase something is because they posted about it on Instagram?

    • hunterkmoon says:

      @anoymer I too think Instagram has the potential to be incredibly effective in building a brand image. Also, tracking conversion to sale may difficult through this social outlet, but you shouldn’t forget the biggest media outlet, broadcast television. Unless it is a direct sale advertisement, such as an informercial, television is also incredibly ineffective in tracking conversion.

      Any company using Instagram will be able to foster direct engagement with consumers, in the form of likes and comments. This information is easily trackable and valuable to companies.

  2. samrothery says:

    I think instagram is a tool that could potentially be very effective, but it will depend heavily on the type of product you have and which demographics you are trying to reach. If you are marketing a product to young adults (18-25) instagram could be an exceptionally productive tool for marketers to use; however, putting ads on instagram for a product geared more towards very young or very old people, instagram won’t be very effective.

    I do, however, believe that instagram could potentially help companies increase brand awareness and eventually the bottom line. Less traditional forms of marketing are on the rise (even though “TV is still King”)… but as an instagram user I find it hard to believe that marketers will be able to advertise without directly interrupting people while using the instagram ap, which could potentially cause problems.

  3. I also think that we need to see how these numbers change over time. Things tend to work better when they are novel.

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