The Instagram economy: App claims to level playing field for small brands
As Instagram predicts UK firms will bank an annual 6.7bn through its app by 2022, Business Advice heads to the heart of the Instagram economy, or so-called Insta-economy, to hear from those leading the pack.
Chairing a hand-picked line-up of entrepreneurs for whom Instagram is central to their business, the social media platform’s head of community for EMEA, AlI Busacca, helped spark a discussion of how important the social giant believes the app has become to brand building.
Each founder talked about the role Instagram had played in establishing their business, generating sales and boosting brand engagement. In some cases, as Earl of East London co-founder Paul Firmin explained, the app’s direct messaging had begun to replace email as their primary customer contact point.
Also on the panel was Anthonyimpey, chair of the Federation of Small Businesses? (FSB) skills policy board and another local entrepreneur. Impey told the audience that in a business environment where connectivity and agility are paramount, Instagram had become an important tool for growing brands.?
‘small business owners are capable of adapting to economic and political changes and the pace of change will only get faster, he added.
For doughnut maker Vicky Graham, who started using Instagram to showcase her homemade, American-style doughnuts after leaving her role at a food magazine in 2015, the very existence of her business owed to Instagram. Two years after its launch, 90 per cent of Vicky’s Donuts sales are made through the app, so it seems obvious that Instagram will continue to be an essential partner for the brand.
it’s become our go-to platform, Graham told us afterwards. We rely on it to showcase the brand. Weve already got a healthy following and it’s an immediate way to market everything we do. I can’t imagine not having it.
A theme recurring throughout the discussion was brand integrity, and the dangers of compromising your image for maximum exposure. Ian Campbell Cole, founder of hand-crafted accessories brand Campbell Cole, explained how Instagram allowed for authentic? story-telling, allowing a brand to keep close control of its output.
The entrepreneurs were also keen to downplay Instagram as a numbers game. You can always tell when a profile has paid for its followers, Graham added, warning it was as counterproductive to amass uninterested users as it was damaging to brand integrity.
The celebration of the Instagram economy was co-ordinated alongside a new report detailing the level of Instagram use by small UK companies, and some impressive projections on the platform’s future economic impact.
Small business owners since using Instagram
UK Instagram users
55 per cent have increased sales
80 per cent follow a brand
45 per cent have hired staff due to growth in demand
One in four discover and buy products through the app
62 per cent say business is stronger
60 per cent learn about products and services on the platform
Half say it has created deeper customer relationships
23m UK users overall
Overall, the tech firm claimed the gross value added (GVA) revenue from small UK businesses using Instagram reached 1.25bn in 2017. By 2022, it believes GVA will reach 6.78bn per year, as more entrepreneurs take advantage of the growing array of tools offered on the app’s business profiles.
Labour market impact could also be significant. Factoring in new supply chains, Instagram expects to be responsible for 106, 000 extra jobs within just five years. It also claimed the platform will add almost a quarter onto the current retail and wholesale workforce by 2022, creating 16, 000 new positions.
__________________________________________________________________________________ Instagram founder shares startup stories with Made in Chelsea entrepreneurAt a gathering of the UK’s leading Instagram entrepreneurs, Business Advice heard from an expert panel of startup owners led by Instagram founder Mike Krieger.
Business Advice caught up with Busacca after the discussion to see how else Instagram helped young brands connect with chosen audiences. As the person tasked with shouting about Instagram’s role in building these connections, why does she believe the idea of an online community is so important in 2017?
Three takeaway tips from the Instagram entrepreneurs
Engage with like-minded brands to build a community that benefits your own business
Make full use of Business Tools, optimising your profile with links and seeing how your audience engages through analytics
Encourage your following to create user generated content through hashtags, short campaigns and competitions
it is hugely important as a business to understand your audience and customers. Instagram is not just a place where you just follow your friends you follow your passions and check in with the businesses you really love. it’s why we think insights on the business profile are so strong, because it gives you the opportunity to understand a bit more about the people you’re trying to reach.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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