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Learn the Pros and Cons of Instagram for Your Business

ByLindsey Miller

Instagram is an incredible marketing tool that just might be the missing piece to your marketing strategy. A recent study showed that Instagram is the No. 1 social media platform for building brand awareness. On top of that, its ad revenue is predicted to be $50.58 billion in 2023. Before you get started using this highly potent marketing tool, look at your goals and consider the pros and cons of Instagram for your business. 

Why Should Your Business Be on Instagram?

Recent studies have shown that 90% of Instagram users say they follow at least one business, making Instagram users an incredible target audience because they are open to consuming advertising.

Reasons you should use Instagram for your business:

  • People Love It. Instagram is the most downloaded app in the world. Global users spend an average of 11.7 hours per month on the platform. This data tells us that people genuinely enjoy being on the platform and use it consistently. 
  • It’s Expected. 15% of U.S. shoppers begin their search on Instagram, and 81% use the platform for researching new products and services. You’re missing out on a valuable target audience if you’re not using Instagram to grow your business. Additionally, if a user searches for you on Instagram and can’t find you, they may doubt your credibility as a business. 
  • Tagging Increases Awareness. Tagging lets users mention your company in posts about your product and provides a direct link to your profile. You can encourage this type of engagement in several ways. One method is to pay influencers to review your product and tag your business in their content. You can also ask existing customers to interact with you on social media. Another popular method is to offer a giveaway on your Instagram and have followers tag your business on their stories to enter. These methods help drive traffic and get your business in front of more people.
  • Boost Sales. Instagram’s myriad shopping features make it easy to boost sales through your profile. These features include in-app purchases, product detail pages, ads with product tags, and product launches. 
  • Builds Trust. Instagram gives you another platform to connect with your audience and increase brand impressions as a result. A high amount of impressions helps build trust and lends credibility to your business. 
  • Provides Data. Instagram Insights gives you valuable information on the breakdown of your followers and the performance of your content. This data allows you to make adjustments to your content and change the direction of your marketing efforts to better engage your target audience. Keep in mind, this information is only available on the Instagram mobile app. 

Instagram for Personal Use vs. Instagram for Business

Instagram offers two options when creating your profile: personal and business. While both enable you to engage with your audience, business profiles offer tools that can help grow your business exponentially. 

Benefits of Instagram for business include: 

  • Increased Analytics. Instagram Insights puts valuable information about your account’s performance at your fingertips. This data includes accounts reached, accounts engaged, content interactions, number of plays, and more. 
  • Ability to Advertise. Instagram ads reach 96.6% of active users every month. But what are Instagram ads? They’re posts that businesses can pay to put in front of a specific target audience on Instagram. This approach not only puts your business in front of more people, but it also puts your business in front of more of the right people. They look just like normal posts except for a small “Sponsored” tag. Posting your content as an ad also allows you to include features like a call to action, links, and product tags. 
  • Impact on Visibility and Reach. Using hashtags and location tags can increase your visibility to your target audience and help you reach new audiences as well. Instagram collab posts allow two accounts to jointly post a feed post or reel, putting your business in front of new people. 

Pros and Cons of Instagram for Your Business

Instagram has various features available to help you reach new customers and grow your business, but you’ll want to consider the pros and cons before you get started.

Pros of Instagram for your business include:

  • Reach a Wide Audience. If you use hashtags and location tags to their full potential, you can increase your reach exponentially. Location tags allow you to attach a location to your content, so if you have a brick-and-mortar business or host local events, doing something as simple as tagging your location can help get the word out. Using relevant hashtags can help you reach new audiences as well. Some examples could be #naturalskincare, #healthyeating, or #malefashion.
  • Leverage Visual Content. Instagram is a great place to use visual content, whether it be pictures, reels, or carousels (a single post with multiple pictures or videos). This content could be pictures of your product, videos of staff or customers reviewing your product, a day behind the scenes at headquarters, and more. Creative and unique content tends to perform the best, so feel free to think outside of the box. 
  • Establish Brand Awareness. Instagram’s professional features, like product launches and shoppable posts, can help you build brand awareness for your business. Consistency in your brand messaging across channels is important to creating a strong brand image, so strategy and planning are key here.
  • Affordable. On average, Instagram ads cost around 20 cents to $2 per click, and cost per mille (CPM) averaged $6.70, putting Instagram on the cheaper end of marketing platforms. It also enjoys high engagement for paid and organic content – 23% more engagement than content shared on Facebook. 
  • Link to Your Website. One of Instagram’s simplest features is also the most effective. The ability to link your website to your profile, posts, and stories helps streamline getting people to your website. If someone has to leave the Instagram app to find more information about your business, they could easily get distracted or even come across your competitor instead. Including a link to your website keeps people engaged with your content longer. 
  • Sell Within the App. Giving users the option to purchase your product also streamlines the buying process. Instagram even allows users to save their payment information within the app, so they don’t need to grab their wallets. This way, making a purchase is just a few clicks away for users.
  • Highly Searchable. With the strategic use of the right hashtags, you can organically bring new users to your content. To make the most out of this feature, it’s important to research which hashtags are trending and which would be most relevant to your product.
  • Editing Tools. Instagram’s photo and video editing tools can come in handy if you’re a small or medium-sized business without a large budget for content creation. The tools are all free and easy to use. Plus, there are plenty of tutorials available online to help you learn what’s what and get the most out of this feature.
  • Location Tagging. If you’re a local business trying to drive traffic to your website and/or profile, location tagging is a great way to do so. Users can then search for events or businesses in their area — all from within the app.

Cons of Instagram for your business:

  • High Competition. Because Instagram is so inexpensive and accessible, many businesses use it. Competition there is growing. You may want to consider how saturated the market is for your product and whether Instagram will help put you ahead of everyone else. 
  • Limited Targeting. Instagram uses Facebook’s advertising system, an incredibly powerful tool for reaching your target audience. But privacy updates, changes in regulation, and the option for users to opt out of data tracking have limited its effectiveness.
  • Time Intensive. On average, business accounts post 1.71 posts per day. Although posting something on Instagram takes just a few minutes, the strategy, production, and design of those posts can take much longer. The most successful brands have the highest activity on Instagram, so if you’re unable to dedicate that much time to posting, you may want to pursue another marketing avenue instead. 
  • Algorithm Changes. Instagram’s algorithm is its set of rules for ranking content on the platform. It cross-references information about the content (captions, hashtags, and locations) with information about user engagement to show users more of what they’re interested in. Unfortunately, it changes regularly, so what works for you one week might not work for you the next. 
  • Not for Every Target Audience. The age of Instagram users tends to skew to the younger side, with about 61% of users between the ages of 18 and 34. If your target audience is outside that age range, they are likely more effective methods of marketing to them. 

Tips for Using Instagram for Business

If you think using Instagram is right for your business, there are some things to keep in mind as you get started. 

Tips for using Instagram for your business:

  • Show Up Consistently. Businesses that post frequently have the best odds of reaching their target audience. For most businesses, one or two daily posts work.
  • Cultivate Community. Drive engagement and cultivate community around your brand by inviting customers to interact with you on Instagram. This engagement could be as simple as commenting suggestions on your posts, responding to surveys on your story, or sharing your posts with friends. It helps generate conversations about your business and can strengthen your brand image.
  • Establish a Way to Connect Outside of Instagram. Including links to your website, an online form, a mailing list, or even a phone number are great ways to drive engagement outside of the app. 
  • Create Partnerships to Build Awareness. Partnerships can be with influencers, other local businesses in your area, or even businesses that sell products complementary to yours (like skincare and makeup or sports drinks and athleticwear). These partnerships can help you grow your customer base.
  • Stay Aware of Competitors. Because Instagram is such a competitive marketing platform, monitoring your competitors and constantly looking for ways to differentiate yourself is important. Doing so will ensure you get the best engagement from your target audience.
  • Be Smart with Hashtags. Hashtags are a great way to drive traffic to your business and profile, but the overuse or misuse of hashtags can harm your brand’s success. If you constantly use hashtags that aren’t relevant to your brand, users may use the “Not Interested” feature to no longer see posts like yours. 
  • Leverage Your Bio. Instagram bios have a character limit of only 150 characters. Use this space to deliver a clear and concise description of your business. 
  • Be Authentic. Users on any platform but especially Instagram tend to relate more to content that feels authentic. Be honest, creative, concise, and friendly. People usually come to Instagram for entertaining and engaging content, so as much as possible, make sure your content reflects that. 

Is Instagram Worth it for Business?

Between its low cost, analytical and professional tools, and large user base, Instagram is a potent tool for expanding your business. Your marketing efforts’ success depends largely on how much work you put into it.  

If you think marketing on Instagram is right for your business, but you’re not sure you have the time to dedicate to it, My Marketing Assistant is here to help! We take one marketing task off your plate per day and get it turned around to you in 24-48 hours. Contact us to get started!