Advertising : A niche market for Instagram ?
Instagram is an online mobile photo and video sharing service that enables its users to take pictures and videos, and share them on a
variety of social networking platforms, such as Facebook, Twitter...
Instagram policy is being retargeted in order to
encourage companies from various sectors into advertising through their
application. As an example of this, Instagram has recently opened sponsored
posts to generate revenues and will also introduce targeted ads in a not-so-far
future.
According to Kenshoo’s studies, Instagram’s financial
potential through sponsored post is still far from being reached since the
sponsor feature was only available to promote US brands untill now and is now
(since september 30th) programmed to promote brands from another 30 countries.
Instagram policy on advertisement has created a
disbalance beetween regular users that can only upload 15 seconds videos and
advertisers that can upload up to 30 seconds videos.
According to Fortune, this misbalance is even more
important since regular users have less features than advertisers. As an
example of this, Fortune refers to the possibility for advertisers to post
links to outside various contents such as installing new apps or shopping
through the net.
Thanks to facebook’s targeted ads
technology, advertisers are more likely to stick with Instagram. Moreover,
Instagram’s high click-through rate is also a convincing point (Instagram has a
higher click-rate than any other competitor)
As an example of Instagram’s successful policy, the
e-commerce site Gilt Groupe has managed to increase their number of installed
apps by 85%. Also, the furniture retailer Made.com has increased by 10% their
order values after their Instagram ad campaign.
Sources:
Maria Sayarh
Edouard Pinon
Yohann Gouttes
No comments:
Post a Comment