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2018A Marketing Report by Later1The State ofInstagram Marketing1In order to get ahead, its importantfor businesses to have a thoroughunderstanding of the Instagrammarketing landscape and measurableinsights into what works and what doesnt.Instagram saw massivegrowth in 2017 and is wellon track to reaching over abillion users in 2018.In 2018, were going to see a renewedfocus on the platforms business options,including new ways to optimize yourcontent performance, even more adoptions and tools (were looking at you,Instagram Stories), and an even biggerfocus on influencer marketing. In our State of Instagram Marketing 2018report, we collected responses from over 3,500businesses, influencers, and agencies in orderto provide a comprehensive look at the currentand future state of Instagram marketing.We asked Later users to give feedback on avariety of topics everything from Instagramads to influencer marketing. The result is areport filled with actionable tips, insights, andbest practices for how Instagram marketerscan achieve their goals in 2018.2ABOUT LATERLater is the #1 marketingplatform for InstagramWith Later you can schedule Instagram posts, plan yourInstagram feed, curate user-generated content, optimizeyour posts with analytics, and more!Try Later for Free!From consumer products to events &entertainment, Instagram marketerscome from a diverse array of industriesand backgrounds.Team Size: 1-579% report that they manage theirInstagram account(s) alone, while 21%share the responsibility with 2-5 people.Job Title: Countless49% report being a founder/owner, while 35%work in marketing. Other popular departmentsfor Instagram marketers include product,sales, operations, customer experience, andcustomer supportpany size: Mostly Small47% report working alone, while 28% work forcompanies with 2-10 employees. Only 8% workfor companies with over 100 employees.3Consumer ProductsEcommerceMedia & PublishingOtherPhotography & ArtMarketing, PR & AdvertisingNon-ProfitTravel & TourismEducationEvents & EntertainmentMedical & HealthcareIT & ServicesHealth & WellnessFashion & Beauty30%11%9.5%8.3%7.3%6.4%5.2%4.6%4.5%2.6%2.3%1.9%1.9%1.7%WHO INSTAGRAM MARKETERS AREAs more businesses use Instagramto connect with customers, brandstrategy has expanded to includenew goals and KPIs.While 2017 saw a big focus onincreasing brand awareness,2018 could finally be the year thatInstagram goes mainstream as asales channel, with more businessesthan ever before focusing onInstagram advertising, influencermarketing, and product promotion.Trending GoalsDriving ecommerce sales grew by 12%Connecting with influencers grew by 16%Advertising to potential customers grew by 7%4INSTAGRAM MARKETING GOALSIncreasing followerengagement &loyaltyIncreasingbrand awarenessBuilding a moreengaged communityToday, businesses prioritize followerengagement and loyalty over brandawareness. And more businesses arefinding success using Instagram to driveecommerce sales.What are your goals for Instagram marketing in 2018?79% 72% 64%54% 48% 38%Showcasing Advertising to Driving moreproducts & services potential customers ecommerce salesHow do you measure successwith Instagram marketing?81%by Post Engagementthe number of comments and likes on posts66%by Follower Countthe number of people following your account39%by Referral Trafficthe number of clicks on link in Instagram bio34%by Conversionsthe number of sales or signups from Instagram5INSTAGRAM MARKETING SUCCESS81% of businesses report that postengagement is the best measure ofInstagram marketing success.While follower count and referral traffic are both important, post engagement winstop spot for a reason, and it has to do with the Instagram algorithm. When a postreceives a ton of likes and comments, this signals to the Instagram algorithmthat its quality, engaging content, and it gets shown it to more users. If you canoptimize the engagement rate, you increase the chances of getting more eyes onyour Instagram posts.Why Engagement WinsEngagement affects the visibility of your Instagram contentEngagement can tell you how well your content resonates with your audienceHigher engagement impacts your ROIWhile engagement outdid follower count as the best measure ofInstagram marketing success, most businesses rank growing theirfollower count as their biggest challenge.Original Content Instagram Stories Instagram VideosBusinesses are investing more in originalcontent and Instagram Stories than otherforms of Instagram content.What types of content does your business plan to createmore of in 2018?74% 68% 48% 39%Instagram Contests& GiveawaysInstagram Ads User-GeneratedContentSponsoredInstagram Posts36% 31% 24% 21%Instagram LiveBroadcastsINSTAGRAM CONTENTLeveraging user-generated contenton Instagram might save you timeand money, but more businessesare investing in original contentthan anything else. Unsurprisingly,Instagram Stories ranked as thesecond most popular form ofInstagram content. Since it was firstreleased in August 2016, the featurehas blown up in popularity, givingbusinesses a new, effective, and freeway to connect with their followers.Later TipIf you thought that Instagram Stories waspopular in 2017, just wait until you see whatsahead. If you havent already, we (seriously)recommend building an InstagramStories strategy with clear objectives andmeasurable results.67TakeawayTheres no denying that 2017 was the year ofInstagram Stories. Instagrams copycat versionof Snapchat may not have as many features orfilters, but in 2017 it quickly reached over 300million daily active users, which is double thesize of Snapchat.Using Instagram Stories for business is nowan essential part of your Instagram marketingstrategy. But the real trend for 2018 will beusing Stories to reach new audiences. Andwhile Instagram Stories ads are still relativelynew (released in March 2017), we expect to seemajor growth for this ad type.Need help with your InstagramStories strategy? Check out ourUltimate Guide to InstagramStories for Business .In 2018, you can expect InstagramStories to continue to dominate, withnew features to keep users engaged(and new tools to help brands planand schedule Stories).Do you plan on creating more Instagram Stories in 2018?Businesses that dont currentlyuse Instagram Stories24% No76% YesBusinesses that currentlyuse Instagram Stories4% No96% YesINSTAGRAM CONTENT?8More businesses are using InstagramStories to promote their products and/orservices, and build an engaged community.What are your focus areas for Instagram Stories in 2018?HOW BUSINESSES USE INSTAGRAM STORIESEven among businesses that havespecial reason to use InstagramStories to drive sales, the feature isstill generally perceived (and used) topromote products rather than to sellthem. This could change as Instagramadds more conversion-focusedPromoting our products and servicesBuilding a more engaged communitySending traffic to our websiteShowing our company culture & valuesSharing demos & tutorialsGathering follower feedbackLimited time promosDriving more ecommerce sales64%63%47%43%33%32%26%25%Sharing company or industry newsTakeovers & guest hosting23%15%capabilities, but for the time being, yourfocus should be on driving traffic toyour website, blog, or product pages.Later TipIn 2017, Instagram introduced a new featurefor businesses with 10,000 or more followersto add clickable links to their InstagramStories. While there are a number of waysfor businesses to drive traffic with InstagramStories , if you have access to this feature wedefinitely recommend using it.Need some help with this? Hereare 5 Ways to Drive Traffic withInstagram Stories .?9TakeawayDespite its growing popularity, few businessesare tracking and measuring the performanceof their Instagram Stories. It could be thatstory engagement simply isnt as tangible asreferral traffic or follower count. But in anycase, establishing clear goals and KPIs for yourInstagram Stories content is important if youwant to get the most from the feature.Switch to an Instagram business profile.If tracking your story engagement doesnt haveyou biting at the bit, consider switching to anInstagram business profile for more in-depthmetrics. Along with impressions and reach, youcan also track your Stories exits and repliesfrom the past two weeks.Track your clicks.If your Instagram account is verified, or if youhave over 10,000 followers and an Instagrambusiness profile, you can easily add linksto Instagram Stories that users can visit byjust “swiping up” on the screen. But becauseInstagram Stories analytics dont currently trackURL clicks, in order to measure your traffic andconversions, youll want to use a link that istracked separately in Google Analytics.Post Engagement Story EngagementMeasuring the performance of InstagramStories isnt a priority for businesses atthe moment, but as the platform evolvesin 2018, youll want to start tracking yourStories analytics tooparing how businesses measure success with theirInstagram marketing81%24%INSTAGRAM STORIES METRICS71%Only 22% of businesses currentlypartner with influencers on Instagram,but it could grow to over 40% in 2018.Despite the low figures, Instagram influencer marketingis poised to become a key strategy to promoting yourbusiness and products on Instagram. In particular,we expect to see major growth in 2018 with micro-influencer marketing, which has shown to yield betterresults for businesses. According to Collectively, micro-influencers reported 15-75% growth in 2017.4%1%2%10How many Instagram influencersare you currently working with?Under 1010-25 16%25-50 6%50-100100-250250 +Why?Influencers with a smaller following tend to retain higher levels ofengagement than top-tier influencersMicro-influencers are more like everyday consumers, so they tend to bevery relatable and trustworthyMicro-influencers can create valuable content for your brand at little tono cost86%of businesses that currently partner with influencers onInstagram plan to partner with more influencers in 2018.INFLUENCER MARKETING11Influencer marketing is used mainly toincrease brand awareness and reachnew targeted audiences.79%95%74%65%of influencers measure the success of their sponsoredposts by how much engagement they receiveof influencers repost Instagram as their favoritesocial media platform to work onof influencers report creating under 5 sponsored postsor Instagram Stories per monthof businesses that partnered with influencers onInstagram in 2017 plan on increasing their influencermarketing budget in 2018.Later InsightFinding the right influencers for your marketingcampaign can be a big challenge, but creatingclear goals helps. For example, if your goal isto rack up a lot of engagement, it might makesense to parter with micro-influencers withsmaller audiences but higher engagementrates. If youre trying to increase your brandawareness, metrics such as reach and trafficwill be more useful.Some of the more common performancemetrics you can use for measuring the impactof your influencer marketing are:Engagement rate: likes, comments, sharesBrand sentiment: how people are talkingabout your brandTraffic: customers visiting your websiteSales: conversions and revenues generatedHOW BUSINESSES USE INFLUENCER MARKETING79%70%When an influencer has a highengagement rate, it means theirfollowers are paying attention andtaking action on their content. Thatswhy most businesses (and Instagramagencies) use engagement toevaluate who is an ideal influenceranic reach directly translatesinto engagement and ROI (return oninvestment). But keep in mind thatengagement isnt everything. Whenevaluating an influencer, its best tolook at several factors.Later TipsGenerally, you want to see an engagement rateof 23% on influencers posts. A ratio of 46%is excellent, while posts in the high tens andtwenties are considered “viral.”1279% of businesses rank engagement as themost important factor when evaluatingwho is an ideal influencer.What are some of the factors that impact who you considerto be an ideal influencer?EngagementQuality of FollowersIndustry or NicheNumber of FollowersBudget RequirementsLocation67%56%46%33%HOW BUSINESSES VALUE INFLUENCERS1373% of influencers rank number offollowers as the most important factorthat businesses take into considerationwhen determining how much to pay fora sponsored post.While businesses rank engagement as the mostimportant metric for evaluating who is an idealinfluencer, influencers themselves view number offollowers as more important. Whats interestingabout this is that engagement rate tends to decreaseas follower count grows. Influencers with fewerfollowers often retain higher engagement rates ontheir posts, while influencers with large audiencestend to see decreased engagement rates and lessdirect communication with their followers.What are the biggest factor that businesses take into considerationwhen determining how much to pay for sponsored posts?HOW INFLUENCERS PERCEIVE THEIR OWN VALUENumber ofFollowersQuality ofFollowers44%BudgetRequirementsOthersEngagement73% 66%Industry orNiche32% 28%Location16% 2%14$3000-$5000 $5000-$10000 $10000-$20000 $20000-$50000+$0-$25066%84%INFLUENCER COMPENSATION77% of businesses report giving free products and/orservices in exchange for sponsored posts, while flat rateis the second most popular form of compensation.Among businesses that pay for sponsored Instagram posts, 66% report that they pay under $250 per post, while 27%pay between $250 and $1000. We compared this data with what influencers themselves report charging for sponsoredInstagram posts and found a strong correlation between the two.On average, how much do you pay per sponsoredInstagram post?How much do you charge per sponsoredInstagram post?$250-$100027%13%$1000-$30002%4% 1%1%1%0%1%0%15Influencers who dont disclose have usuallyworked for a shorter amount of time.Most of the influencers who reported notdisclosing their sponsored posts have workedfor under one year.Later InsightsFTC-approved disclosure is becoming anindustry norm.According to the FTC, the only the only FTC-compliant hashtags are #sponsored and#ad. However, you can also disclose yourpartnerships by using a unique partnershiphashtag. All three are commonly used byinfluencers today.Influencers are beginning to use Instagramsbuilt-in disclosure feature.12% of influencers reported using Instagramsnew paid partnership feature which may ormay not comply with the FTCs endorsementguidelines.With the recent spat of FTC crackdownson Instagram partnerships, discussionaround disclosure reached new heightsin 2017. The good news is that mostinfluencer
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