As a platform where a simple photo of an egg was the most-liked post for nearly four years, Instagram is full of surprises. On the whole, it’s a visually-driven platform with a vast user base, and it offers an unparalleled opportunity to connect with potential customers and promote products or services.

However, as with any marketing strategy, Instagram advertising comes with its own set of benefits and limitations. This guide will delve into the details of Instagram advertising, shedding light on its remarkable advantages while also acknowledging its potential drawbacks.

Instagram Statistics for Marketers

Over 1 billion people use Instagram every month, and 500 million of those use the app daily
Instagram is the 7th most visited website in the world and the 4th most-used social media platform
50% of users say they become more interested in a brand after seeing their Instagram ads
Users spend an average of 30 minutes per day on Instagram

Instagram’s Demographics

With the rise of TikTok, there’s been questions as to whether the younger generations would be ditching Instagram in favour of the video app. However, this doesn’t seem to be the case. Instagram is still Gen Z’s second most used app - behind YouTube, and ahead of TikTok.

The majority of Instagram users are, in fact, either Millennials or Gen Z - those under the age of 44 account for 86% of the platform’s audience.

Instagram offers access to audiences worldwide, with users in India making up the largest audience with 229 million users. They’re followed by the US with 143 million users, Brazil with 113 million, Indonesia with 89 million, and Türkiye with 48 million. The UK is in 8th place with nearly 29 million Instagram users - 42% of the country’s total population.

There are more male Instagram users worldwide than female: 51.8% vs 48.2%. Meanwhile, in both the US and the UK, it’s the other way around - 56.5% of Instagram users in the US and UK are female.

Instagram’s Key Marketing Features

Diverse ad formats

Instagram offers a variety of ad formats, including single image ads, video ads, carousel ads, Stories ads, and Explore ads. These different formats allow businesses to create visually appealing and engaging ads that are tailored to their specific objectives.

Instagram Reels receive a 22% higher engagement rate

Shopping ads

Shopping ads allow businesses to tag products in their ads, making it easy for customers to shop directly from Instagram. This makes them a powerful way to promote products and drive sales. To create Instagram shopping ads, you must first create an Instagram business profile as well as a catalogue. The catalogue is a collection of products which you’ll be selling on Instagram. After you’ve created your catalogue, you can start creating ads - there are a few different types of Instagram shopping ads:

Single image ads, which feature a single image of a product along with a product description, price, and a call to action button
Carousel ads, which feature multiple images of a product that users can scroll through. This is a great way to show off different features of the product or showcase different variations of the same product
Collection ads, which feature a collection of products from a catalogue. Users can click on the ad to view a storefront where they can browse and purchase the products

Shoppable posts

As well as tagging products in ads, businesses can also tag them in organic posts. This means every post presents a chance to drive sales by making it easy for customers to discover and purchase products. This is again done by creating a catalogue of products you want to sell. These shoppable posts allow businesses to link products directly from their posts, making it easy for customers to shop without ever leaving the app.

Branded content

Branded content allows businesses to collaborate with influencers to create and share sponsored content. By partnering with influencers, brands can tap into the influencer's followers and gain access to a highly engaged audience.

Influencers must disclose their partnership with the brand by using the "paid partnership" label. This label ensures that Instagram users are aware that the influencer is being compensated for creating the content. The branded content will be shared on the influencer's Instagram feed, stories, or Reels, and is seen by the influencer's followers, who may be interested in learning more about the brand.

Businesses can also promote branded content as ads. These ads will appear in the feeds of users who are likely to be interested in the brand's products or services.

Instagram Insights

Instagram Insights is a feature available to business accounts which provides brands with valuable data about their audience and their content performance. This data allows you to clearly see which types of posts perform best for a variety of KPIs (Key Performance Indicators) including impressions, likes, comments, shares, sales, and follows.

You can also view geographical data as well as other demographic information such as age range, gender, and times when your followers are most active. This helps you to understand more about your audience, which will allow you to tailor your content accordingly.

Limitations of Marketing on Instagram

Despite its immense popularity and potential for reaching a large audience, Instagram marketing has certain limitations that you should be aware of before investing time and resources into this platform.

Limited Link Sharing

Instagram's primary focus is on visual content, and it places restrictions on how businesses can direct users to external links. Unlike platforms like Facebook, Instagram only allows businesses to include a single clickable link in their bio. This makes it challenging to drive direct traffic to websites or landing pages from organic posts.

Ever-Changing Algorithm

Instagram's algorithm is constantly evolving, making it difficult for businesses to maintain consistent visibility and engagement. The algorithm prioritises content that it deems relevant and engaging to users, and businesses need to be constantly adapting their strategies to stay ahead of the curve. Instagram also frequently introduces new features and updates, which can require businesses to adapt their strategies and tactics. This can be time-consuming and may necessitate additional resources to stay on top of the latest trends.

Focus on Aesthetics over Functionality

Instagram's emphasis on visual appeal can make it challenging to convey complex messages or provide detailed product information. Businesses need to carefully craft their content to capture attention and effectively communicate their brand message within the platform's limitations.

High Competition and Ad Costs

With such a massive user base, it’s no wonder there are over 200 million businesses on Instagram. This means businesses face intense competition for attention and visibility. This can drive up advertising costs, making it difficult for smaller businesses or those with limited budgets to compete effectively.

Potential for Negative Feedback

Instagram's open nature makes businesses vulnerable to negative feedback and reviews. While constructive criticism can be valuable, negative comments can damage brand reputation and discourage potential customers.

Temporary Nature of Stories

Instagram Stories are a hugely popular feature - around 4 million businesses use Stories ads every month. However, whether you’ve paid to promote them or not, Stories vanish after 24 hours. This makes it difficult for businesses to create a lasting impact. Businesses need to use Stories strategically to capture attention and drive engagement within the limited time frame.

Despite these limitations, Instagram marketing remains a powerful tool for businesses to connect with their target audience, build brand awareness, and drive engagement. By carefully considering the platform's strengths and weaknesses, businesses can develop effective strategies to maximise their return on investment.

UNBXD is a Creative Digital Agency which specialises in social media marketing using platforms such as Facebook, TikTok, LinkedIn and Instagram to create exciting, innovative solutions for breakthrough brands. We are experts in supporting brands to outline clear objectives, develop strong communication strategies and create unique content which truly engages their audience. Come and see what we can do for you!