According to reports by L2’s Intelligence and GlobalWebIndex it is. Both studies account that Instagram is growing faster than any other social media sites worldwide, with an active user base increase of 23 percent over the last six months.
L2, a retail analytics company based in New York, released a new data-driven research that offers insight into influential brands’ investments on Instagram and the platform’s e-commerce potential. GlobalWebIndex’s report, published in January, was based on responses from some 170,000 users across 32 countries.
Due to its extremely high user engagement, Instagram is becoming an important tool for brand marketers. As noted by survey performed by Pew Research – based on data from telephone interviews conducted on August and September last year – over half of users use the app daily, while 35 percent do so multiple times a day.
Instagram users are even interacting with brands that do not have an official presence on the platform. One example is Chanel, which has about 5 million photos posted by users with the hashtag #chanel.
The photo-sharing network’s revenue potential is being explored by many of the world’s top brands. Both luxury brands and mass-market retailers have been taking advantage of the app to generate interest and potential growth in sales. L2 predicts that it will generate $250 million to $400 million in revenue only this year.
Pau Sabria of Oliapic, a New York company that helps brands solicit and publish photos of their products taken by ordinary Instagram users, told the New York Times that by adding user-generated photos to a retail site the number of visitors who turn into buyers increased by 5 to 7 percent and the average order value rose by 2 percent. One of the reasons for the increase, according to him, is that clients can explore how a product looks “in real life” by Instagram users. He affirms that the platform is already generating real revenue for brands, such as some of his clients: American Eagle Outfitters, Lancôme, Coach and West Elm.
One of the reasons for the great success of Instagram might be thanks to the extensive use of mobile handsets for social networking services. Cellphones are now the most popular for access, with an average of 66 percent users compared to 64 percent for PCs and tablets.
Another advantage of Instagram, when compared to platforms such as Twitter and Tumblr, is its visual appeal. While text can be a little harder to absorb, a short video or a photo say it all in a few seconds.
Guest post by Bruna Indalecio