Instagram’s Advertising Model Is Working

Never enough news about our loved Instagram! What can we do when it is fun! So here is some fresh news if you are interested. Enjoy!

2013 saw some great ads, but what is new and different this year is not just the brains behind the immaculate advertisements, but even the new and different ways the marketers have resorted to advertise their products.

We all would be familiar with the major brand advertising happening on the blessed Facebook, but in a bid to popularise themselves and maximise their reach, the latest social network to join the list to support ads is the online photo and video-sharing social site: Instagram.

For non or lesser active Instagram Users, Instagram introduced ads earlier this year, on November 1. The first sponsored post on Instagram was of Fashion designer Michael Kors’s Parisian-inspired jewelry-gram that featured a $225 gold watch from the designer’s Timeless Collection.

Out of the four brands that underwent the initial brand campaigns, Instagram gave a detailed case study of Ben & Jerry’s and Levi’s in a blog post on its official business blog.

The analysis, they say, is based on metrics such as reach, ad recall and awareness that is more apt in recognising the effectiveness and the value of the brand campaigning rather than social metrics such as likes and comments.

The results as per the post are here :

Reach

  • All four initial ad campaigns measured were successful at delivering the broad reach our advertisers were seeking
  • The marketers achieved a high impact with a very low average frequency of ad impressions per user
  • Levi’s reached 7.4 million people in the U.S. across a nine-day period, targeting people aged 18-34
  • Ben & Jerry’s reached 9.8 million people in the U.S. over eight days, targeting people aged 18-35

Ad Recall

  • Across the four campaigns, there was a 32-point incremental lift in ad recall per campaign for people who were repeatedly exposed to a particular campaign versus control groups

Awareness

  • Across the four campaigns, there was a ten-point incremental lift in brand message awareness per campaign for people who were repeatedly exposed to a particular campaign versus control groups
  • In particular, seventeen percent of people who saw a single ad for Ben & Jerry’s Scotchy Scotch Scotch-flavored ice cream not only became aware of the new flavor, they also associated it with the brand

With this initial win, Instagram promises to continue to optimise their ad products with a two-point agenda: 1) To make them successful for marketers, and 2) To give the users of Instagram a great experience.

With the kind of reach that Instagram has been able to deliver with such campaigns in less than two months, it looks like it might soon play catch up with ad revenues of Google and Facebook and eventually help Facebook, as Instagram is now owned by Facebook.