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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

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The amount of businesses invest on advertising on the social media platform is skyrocketing, especially on Instagram. Eighty percent of accounts (users) in Instagram follow at least one out of the 25 million business account on the platform (Instagram Business Page, n.d. and Aslam, 2018) and the primary users are young adults of age 18 to 29 with a percentage of 59% of overall Instagram users (Osman, 2018). The impact of Instagram is therefore very strong, especially on the advertising industry for there is a huge group of users to approach.

It is no doubt that people of younger generation love Instagram. Being the voice of the millennials generation, Grace Regan (2015) from TheGuardian.com said that the streamlined aesthetic of Instagram is what make it appealing to the people of this generation, making it a platform millennials often go on to. Other than that, it can be said that Instagram is a platform for story telling in the form of pictures, videos or even texts. People go on Instagram to share their interesting life, such as their wherebeing, moods, food, and so on. Humans are social creatures, we socialise. Hence, storytelling on Instagram is loved by many.

As a result of people loving stories, it can be an impact towards the advertising industry because people will get emotional connected when advertiser put up any advertisement through Instagram with a story telling method (Hughes, 2017). Aside from that, Erica Ferretti (2017) from Vision Advertising, has explained various impacts of Instagram to the advertising industry. She mentioned that more audiences can be reached with Instagram, with higher engagement as well as showing creativity or building awareness. All of these make things easier for the people in the industry. Reason being, Instagram has a smart and unique way of making advertisement. The various ways that Instagram allows advertising industry to promote are, through different picture or video posts, through Instagram stories, or even carousel advertisement method. “The app's strict creative policy means that adverts become so native they blend into the rest of users' feeds,” (Regan, 2015). That alone, gives an impact on the advertising industry in a way because brands and business gains new views even without making the advertising post look oddly out of space on the aesthetic feed. Visually satisfying posts cause users to ignore the fact that it is an advertisement. Moreover, Gilbert (2018) discussed that brands or business upgrade their advertising style, breaking away from the traditional ways by partnering up with influencers on Instagram. Though advertisements are in all forms nowadays, the most commonly seen ones are those advertising or marketing through social influencers due to the fact that Instagram is now the “best performing channel for social action,” said Gilbert. It is very effective when the partnering influencer shares their opinion or view of the product of the business, making them sound trustworthy to the people over the platform. This way, new audiences can be reached and after they have followed the account for the company, they will get to see the latest updates on the account activity frequently, creating a brand loyalty (Ferretti, 2017).

Ferretti said that audiences' engagement are also important in making an impact for the advertising industry. For instance, when the advertisement teases something about upcoming plan or events, audiences will comment under the post, creating anticipation and awareness among the audiences. Furthermore, again according to the Instagram Business Page (n.d.), Instagram provide another impact on advertising industry when it comes to targeting audience. There are different options of Instagram that boost the accuracy of targeting audiences when business profile is enabled. The audience can be reached or narrowed down based on demographics (age, gender, language), locations (country, region, city), interest (apps they use, ads they click on, accounts they follow), etc. It is a great for the advertising industry to plan or make advertisements based on the target audience or audiences to look for anything in different aspects through the advertisements.

With all impacts on the advertising industry stated above, they lead to one main and the largest impact which is increased revenue or profit. When audience are reached, brand loyalty would increase too, hence there will be many business wanting to invest on the advertising industry, which provides job opportunities and so on.

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