Is Instagram Good For Business?

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Today, businesses have exhausted large budgets annually using social media platforms such as Facebook, Twitter, and various social bookmarking websites in order to reach a broader market through advertising and other marketing strategies. Though a large majority of businesses have seen a respectable return on investment, how will businesses be received in the Instagram community as it continues to grow and evolve?

The balance between advertising and user interaction has played a huge part in the way developers at these major social platforms strategically allow businesses to interact. Facebook has taken a well-received approach to this concept, by offering like-minded ads that correlate with the users interest, and demographics. This creates a less threatening approach for lead generation.

Over the last few years at Facebook has continued to change the policies and procedures around business accounts, in order to make the Facebook experience safe and non-threatening for its users. Facebook now has a dedicated area for businesses, whereas, during the beginning years they could only offer consumer accounts that businesses used to interact with users.

Instagram is a $35 billion business, according to Citi analyst Mark May. Mark Zuckerberg famously paid a sum of $1 billion for the service back in April 2012.

Last week, Instagram announced that it had surpassed Twitter in terms of users, topping out at over 300 million. Its users are also an average of 2x more engaged than Twitter.

According to many market analyses the potential to eventually rake in tons of money by monetizing its audience and data assets will make the value of Instagram even greater.

Instagram started advertising in the U.S. late 2013 and was instantly able to bring in high profile clients such as Levi’s, Lexus, Macy’s, Michael Kors, and PayPal.

So far, Instagram users have seen a soft introduction to business ads and interaction. This will increase in the next few years, which will be interesting to see how they choose to interact with the user.

As the Internet continues to evolve, so will the social media platforms. The successful platforms will continually adapt to the ever-changing needs of businesses and consumers. The opportunity for lead generating strategic marketing will only get better. Social media can be a powerful tool for all businesses, especially for those businesses that actually use it.

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