Should You Create a Business Profile on Instagram for Your Business?
Fri, 09 Aug 2019 || By Ariq Dmitri Andrei

Introduction

With the rapid spread of globalization, motored by technological advancement, internet penetration is rapidly increasing worldwide. Hence, the digital disruption is changing various aspects of society, and the business sector is not an exception. This digital disruption adds a new dimension for businesses; social media marketing. Businesses, whether small ones or even multinational corporations, have relatively similar access to conduct social marketing on Instagram, as Instagram is a platform that is free to use and hosts a massive amount of active users. This article will explain the benefits of using a business account and how it can help businesses conduct social media marketing on Instagram.

 

Discussion

One of the perks of switching to a business account is the ability to access Instagram Insight. This feature will provide business profile users with various useful data, such as the number of profile views, the individual performance of each content, whether it’s a picture, video, Instagram stories or promotion and the amount of interaction with other accounts. This can be utilized by the account administrators to understand which type of content that the audience seeks the most, hence useful to plan future contents. In addition, Instagram Insight also provides several demographic data, such as the location of the business account’s followers (their cities and their countries), their gender, their age range and their preferred time of accessing Instagram. This demographic data can help the business account administrators to further understand their followers, providing powerful data for market segmentation. Interestingly, these features can be accessed for free.

Another advantage of switching to a business profile is the sponsored advertising feature. As can be seen in Instagram, users exposed to a sponsored ad content, whether it’s in the form of a picture, video or Instagram stories, are able to click on the “see more” or other similar phrases, which can direct to the website or the Instagram account of ad’s sponsor. This is an important feature, as a clickable link cannot be posted on regular posts, hence the often seen “link in bio” captions. In addition to placing these sponsored ads themselves, business accounts can also partner with influencers in promoting their products, since influencers can endorse such products in their posts. Partnering with influencers is an important part of social media marketing, as it was estimated that in total, approximately $2 billion worth of revenue were made from endorsements in 2017, and this number is expected to grow to around $10 billion in 2020[i].

Furthermore, according to a research, advertisements with influencers can generate as much as 11 times larger amount of return on investment rate compared to the traditional forms of advertisements, such as TV commercials[ii]. Social media marketing on Instagram is indeed a massive industry, as there are already more than 1 billion active Instagram users as of June 2018[iii]. Data sourced from the Instagram Insight feature can be used to enhance sponsored advertisements. An example is determining when to post a sponsored ad based on the preferred active hours and days of their followers.

 

Conclusion

Hence, using a business profile is recommended in order to enhance a business’ social media marketing. The Instagram Insights feature can be handy in providing analytics on the performance of your posts, as well as several basic demographic characteristics of your audience. In addition, sponsored ads on Instagram can also help you to promote your products and increase brand awareness, as sponsored ads on Instagram or partnering with influencers can be more effective than the traditional forms of advertisement. As time goes by, social media marketing is becoming more relevant, mainly due to the rapidly increasing internet penetration rate.

Read another article by Ariq Dmitri Andrei

Editor: Anaq Duanaiko

References

Statista, 2019. Number of Monthly Active Instagram Users from January 2013 to June 2018 (in millions). [Online]
Available at: https://www.statista.com/statistics/253577/number-of-monthly-active-instagram-users/
[Accessed 26 July 2019].

Wiltshire, E., 2018. The Brand Value of Influencer Marketing in 2018. [Online]
Available at: https://www.socialmediatoday.com/news/the-brand-value-of-influencer-marketing-in-2018-infographic/520810/
[Accessed 26 July 2019].

 

[i] Wiltshire, E., 2018. The Brand Value of Influencer Marketing in 2018. [Online]

Available at: https://www.socialmediatoday.com/news/the-brand-value-of-influencer-marketing-in-2018-infographic/520810/

[Accessed 26 July 2019].

 

[ii] Ibid

[iii] Statista, 2019. Number of Monthly Active Instagram Users from January 2013 to June 2018 (in millions). [Online]

Available at: https://www.statista.com/statistics/253577/number-of-monthly-active-instagram-users/

[Accessed 26 July 2019].