Instagram Analysis

Instagram officially launched on October 6, 2010.

Demographics:

  • Age
    • 59% of 18-29 year olds use Instagram
    • 33% of 30-49 year olds use Instagram
    • 18% of 50-64 year olds use Instagram
    • 8% of people 65+ use Instagram
  • Gender
    • 38% of women online use Instagram
    • 28% of men online use Instagram

Sports teams and organizations primarily use Instagram through their public accounts. On said account, the teams are able to share highlights of games, score updates, off-field activities, birthday posts for players, and many more. In the example of my favorite team, the Philadelphia Flyers, they post ‘memes’ about Valentine’s Day, photos on player’s birthdays, updates about players receiving awards, and promotional videos. The Flyers also kept the fans up-to-date during the All-Star break as they posted photos and videos of the team’s representative at the event. The Flyers also utilize the ‘stories’ feature of the app to post promotional deals just hours before a game starts. When there are a number of open seats left, the team will post a deal promoting a flat rate of $20 per ticket for college students. Sports teams and organizations are also able to promote and target certain posts to different demographics.

Instagram had a projected revenue of $7.019 billion for 2018. The vast majority of the revenue comes from advertisements on their platform. Upwards of 90%-95% of their total revenue actually comes from their advertisements; known as some of the best bang for your buck in the industry. The ads are directly targeted to users that meet Instagram’s algorithms. On Instagram, ads average somewhere between $0.70 and $1.00 per click. Instagram ads actually have the highest engagement rate of all digital ad placements.

Instagram has been facing more and more competitors in the market as social media platforms have been trying to add similar features to each other. Fortunately for Instagram, their wide consumer base allows them to stay positioned as a top dog in the industry. While Snapchat was one of the first apps to include the ‘story’ feature, Instagram joined in quickly after and have surpassed Snapchat story views in a short period of time. All-in-all, the challenges that the company is facing is exactly on par with what all other social media sites are dealing with. Instagram is lucky to have jumped into the game early, standing as one of the giants in the industry.

 

 

 

 

 

 

Sources:

https://wersm.com/the-complete-history-of-instagram/

https://sproutsocial.com/insights/new-social-media-demographics/

https://www.statista.com/statistics/271633/annual-revenue-of-instagram/

http://www.businessofapps.com/data/instagram-statistics/

https://aggregateblog.com/instagram-ads-cost-and-bidding/