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.
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?