Last week, Instagram announced that it now has 25 million active business profiles, an increase of 10 million from July 2017.
That’s a significant figure as it reveals something about the company’s appeal to companies and potentially its advertising income which parent Facebook is being rather tight-lipped about. It also demonstrates that more businesses are valuing the social network as a way to connect with consumers. What’s interesting is that at least half of these profiles are not even linking back to an outside website which suggests that they view the photo app as its own entity.
According to the announcement, a whopping 80% of Instagramers are also followers of a business account and 200 million visit such profiles each day.
Business profiles are essentially a more functional version of user profiles as they include analytics.
However, the hike in business profiles does fuel more competition to gain user attention. Ultimately, it is likely that Instagram will see a repeat of what happened on Facebook – organic reach will become harder to achieve and advertisers may have to pay to be seen across user feeds. The latter is of course good news for Facebook – for now.
Despite this, the company is positive that things will turn out differently for Instagram. Indeed, two-thirds of page visits to business profiles are now coming from users who do not follow certain profiles. The company also confirmed that it was part of parent Facebook’s transparency efforts.
In addition, Instagram has plans to expand its analytics in order to offer more details on where business profile visitors are coming from.