EMarketer Instagram Advertising-What Marketers Need To Know

INSTAGRAM
ADVERTISING
What Marketers Need to Know
JULY 2015
Debra Aho Williamson
Contributors: Danielle Drolet, Jeremy Kressman, Maria Minsker, Corey McNair, Martn Utreras,
Haixia Wang
Read this on
eMarketer for iPad
INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW

Instagram will soon carry a lot more advertising. Direct-response buttons, an API for ad buying and Facebook-style
targeting capabilities will give advertisers new ways to buy and will lead to rapid increases in ad spending on the
photo-focused social network. eMarketer forecasts Instagram will have $595 million in ad revenue this year, rising to
$2.81 billion in 2017.
Advertisers will be eager to try Instagrams new

features, and as a result, the social networks ad
revenue will increase rapidly, approaching $1.5 billion
in 2016 and $3 billion in 2017. Instagram will account
for 3.7% of parent company Facebooks ad revenue
this year.
Instagram Net Mobile Ad Revenues Worldwide,

2015-2017
billions and % of Facebook total ad revenues
$2.81
$1.48
In 2017, Instagram will have higher US net mobile

display ad revenues than Google or Twitter.
Instagram advertisers will be able to use a full slate of
Facebook targeting tools, including the popular Custom
Audiences feature. That will be a key drawing card.
Instagram will set a high bar for direct-response ads,
which will have a premium look. Ad load will remain
low, which will likely increase prices. This combination
will effectively shut out many performance advertisers
seeking a low cost per click (CPC).
Users have shown high engagement with the
branding ads that have appeared on Instagram thus
far, but that could change as new types of advertisers
enter. Appropriate use of targeting and creative will
be necessary.
Instagram will launch ecommerce capabilities with the
shop now and install now buttons, but the kinds
of advertisers that will benefit most from them will be
those with unusual, limited-quantity or eye-catching
products. App installs may fare betteras long as the
ads meet Instagrams creative bar.
WHATS IN THIS REPORT? This report features eMarketers

first forecast for Instagram revenue, as well as an analysis
of what marketers should know about Instagrams user
base and its new ad products, including best practices for
getting the most out of them.
$0.60
10.6%
7.1%
3.7%
2015
2016
2017
Instagram net mobile ad revenues

% of Facebook total ad revenues
Note: paid advertising only; excludes spending by marketers that goes
toward developing or maintaining an Instagram presence
Source: eMarketer, July 2015
193464
www.eMarketer.com
KEY STAT: After a successful test of brand advertising,

Instagram will be open to any advertiser by years end.
Pent-up demand for ads on the social network will help
drive Instagrams revenue to near $600 million this year
and $2.81 billion in 2017. [Note: The 2015 revenue figure in
this chart has been rounded up from $595 million.]
CONTENTS
2 Instagram Advertising: What Marketers Need to Know
3 New Ad Products Will Lead to Rapid Revenue Gains
5 What Marketers Need to Know About Users
10 Making the Most of Instagram Ads
16 eMarketer Interviews
17 Related eMarketer Reports
17 Related Links
17 Editorial and Production Contributors
2015 EMARKETER INC. ALL RIGHTS RESERVED 2
NEW AD PRODUCTS WILL LEAD TO

RAPID REVENUE GAINS
Instagrams ad business will ramp up rapidly this
year, expanding beyond branding to include
direct-response ad units, the ability to buy ads
via an API, and enhanced measurement and
targeting features.
Those features will roll out over the next several months,
and by the end of 2015 Instagram will have a full slate of
ad products for advertisers large and small.
Weve spent the last 18 months establishing the
platform for large brands. The next logical step is to
empower businesses of all sizes to be able to achieve
their objectives, said Jim Squires, Instagrams director of
market operations.
Many companies will be eager to test the social
networks new features. Instagram advertising was
previously a rare commodity, reserved for McDonalds,
LOral, Mercedes-Benz and other brands that were
willing to spend a flat rate of $200,000 to conduct a
campaign. Instagram offered those advertisers a limited
assortment of image ads, 15-second video ads, and the
newest feature, carousel ads, which can display more
than one image.
Now that Instagram is opening up to more advertisers, its
likely to find a lot of pent-up demand.
Instagram is probably [our] favorite platform right now
in terms of pioneering and being willing to try new
things, said Roderick Strother, director of worldwide
digital and social at Lenovo, whose Australian arm
recently conducted its first Instagram ad campaign. The
importance of Instagram has grown tremendously for us.
Instagram has what a lot of marketers see as the most
compelling package: audience plus strong engagement
plus strong brand awareness, said Victor Pineiro, vice
president of social media at digital agency Big Spaceship.
EMARKETERS INSTAGRAM AD
REVENUE FORECAST
Based on expected demand, eMarketer predicts
Instagram will garner $595 million in ad revenue this year
and more than $2.8 billion in 2017.
Instagrams ad revenue is currently all from mobile. It
will make up 5% of Facebooks worldwide mobile ad
revenue this year and 14% of that total in 2017, eMarketer
forecasts. In the US, Instagram will account for 10.7% of
Facebooks mobile ad revenue in 2015 and 28% in 2017.
Instagram Net Mobile Ad Revenue Share of Facebook
Mobile Ad Revenues Worldwide, US vs. Non-US,
2015-2017
% of US Facebook net mobile ad revenues
2015
2016
2017
10.7%
20.1%
28.0%
% of non-US Facebook net mobile ad revenues
0.5%
1.3%
3.7%
% of Facebook net mobile ad

revenues worldwide
5.0%
9.5%
14.0%

193349
www.eMarketer.com
As the percentages above imply, international revenue is

limited. eMarketer predicts just 5% of Instagrams total
mobile ad revenue will come from outside the US this
year. The US will account for the vast majority of revenue
throughout the three-year forecast period, even as
international revenue swells to 15% of the total in 2017.
Instagram Net Mobile Ad Revenues Worldwide, US vs.
Non-US, 2015-2017
billions, % change and % of total
2015
2016
2017
$0.57
$1.37
$2.39
% change
142%
75%
% of total
95%
92%
85%
$0.03
$0.12
$0.42
% change
299%
255%
% of total
5%
8%
15%
Worldwide
$0.60
$1.48
$2.81
% change
149%
90%
US
Non-US

193279
www.eMarketer.com
In a sign of just how quickly Instagram is expected to

grow in the US, eMarketer forecasts that it will have
higher net mobile display ad revenue than Google or
Twitter in 2017.
Instagram, Google and Twitter Net US Mobile Display

Ad Revenues, 2015-2017
billions
$2.38
$2.29
$2.39
Social Media Sites* Where US Marketers Would Be

Interested in Allocating Their Ad Budget, Feb 2015
% of respondents
Instagram
72%
Pinterest
$1.89
LinkedIn
$1.72
$1.47
46%
41%
Google+
$1.37
$1.19
28%
Tumblr
reddit
14%
7%
$0.57
6%
2015
Google
2016
Twitter
Instagram
Note: net ad revenues after companies pay traffic acquisition costs (TAC) to
partner sites; includes display (banners and other, rich media and video); ad
spending on tablets is included; excludes SMS, MMS and P2P
messaging-based advertising
Source: company reports; eMarketer, July 2015
www.eMarketer.com
Several investment banks and financial entities have

issued their own forecasts for Instagram revenue, and
there is general consensus that Instagrams worldwide ad
revenue will top $1 billion in 2016 and $2 billion in 2017.
Comparative Estimates: Instagram Ad Revenues
Worldwide, 2015-2017
millions
2015
2016
2017
Cowen and Company, July 2015
$689
$1,407
$2,223
eMarketer, July 2015
$595
$1,484
$2,813
Raymond James, June 2015
$500
$1,100
$2,000
JMP Securities, June 2015
$445
$1,409
Trefis, May 2015
$411
$971
Canaccord Genuity, June 2015
$1,200
$2,160
-
Source: eMarketer, July 2015; various, as noted, 2015

193479
www.eMarketer.com
THE DEMAND IS THERE

Surveys indicate that marketers are ready to advertise
on Instagram. February 2015 polling of US marketers
by RBC Capital Markets and Advertising Age found that
72% were at least somewhat interested in advertising
there, ahead of Pinterest, LinkedIn and others. [Note:
Facebook, Twitter and YouTube werent included in the
survey question.]
StumbleUpon
Other
Note: n=306; "somewhat interested"; *excluding Facebook, Twitter and

YouTube
Source: RBC Capital Markets and Advertising Age, "Social Media Survey,"
March 12, 2015
2017
193350
26%
186987
www.eMarketer.com
Another investment bank survey, conducted in December

2014 by Cowen and Company, found that 30% of US
senior ad buyers queried who hadnt already advertised
on Instagram planned to allocate ad spending there this
year, ahead of Snapchat and Pinterest.
That dovetailed with a May 2015 finding by Strata that
34% of US ad agency professionals it surveyed said
Instagram was the social media site they were most likely
to use for client campaigns, ahead of LinkedIn, Google+,
Pinterest and Snapchat, among others.
There is also demand outside of the US, where Instagram
advertising is available in only seven markets: Australia,
Brazil, Canada, France, Germany, Japan and the UK.
In Europe, Instagram is both more interesting and
arguably has more potential than Facebook does, said
Marshall Manson, managing director for EAME at
Social@Ogilvy, a unit of Ogilvy & Mather. Despite the
fact that Instagrams user base is much smaller than
Facebooks and that paid advertising is available in a
limited number of markets, marketers are looking at this
going, wow, this could be really amazing, he said.
With Instagrams doors open to advertising, there
will soon be a lot more marketers on Instagram, both
organically as well as in paid advertising. As of now, the
percentage of marketers using Instagram organically trails
behind other platforms. But any company that wants to
buy ads on Instagram will need to have an Instagram
account, Instagram representatives said.
Salesforce Marketing Cloud found in a November 2014

study that 34% of marketers it polled worldwide were
using Instagramthe same percentage that used blogs,
but well behind the response rate for use of Facebook,
Twitter, LinkedIn, Google+ and YouTube.
Leading Social Media Channels Used by Marketers
Worldwide, Nov 2014
% of respondents
Facebook
70%
LinkedIn
Key things to know about Instagram usage include:
62%
Google+
56%
YouTube
56%
Blogging
34%
Instagram
34%
24%
Note: currently using

Source: Salesforce Marketing Cloud, "2015 State of Marketing," Jan 13,
2015
184497
Instagram is a fast-growing property. Its user base

skews young, and it has become a home for people
to explore their passions and interests, as well as to
connect with friends, both ones theyve met in real
life and ones they havent.
80%
Twitter
Pinterest
WHAT MARKETERS NEED TO

KNOW ABOUT USERS
www.eMarketer.com
Among the fast-growing, privately owned US companies

on Inc. Magazines annual Inc. 500 list, Instagram use
reached 25% in 2014, up from 18% in 2013, according to
the University of Massachusetts Dartmouth Center for
Marketing Research.
The expected momentum in marketer usage and
advertising demand will make Instagram a strong
contender for ad dollars in the coming years. The next
two sections of this report explore what marketers should
know about Instagrams users and the platforms new
advertising products.
The number of US users is substantial and growing.

International growth is less strong; other social apps
will be challengers.
Instagram is not Facebook; people use it differently, and
for different reasons.
Brand engagement has been high, but whether that
continues isnt definite.
US USER BASE IS SUBSTANTIAL AND

GROWING
Instagrams monthly US user base increased nearly 60%
in 2014, to 64.2 million, eMarketer calculates. By 2019,
over one-third of the US population is expected to use
Instagram, amounting to 111.6 million people.
US Instagram Users and Penetration, 2013-2019
millions, % change and % of population
93.6%
98.9
106.2
111.6
89.4
59.9%
77.6
64.2
40.2
12.7%
24.2%
30.3%
32.3%
33.6%
20.1%
20.9%
2013
27.6%
2014
Instagram users
2015
10.6%
15.1%
2016
% change
2017
7.4%
2018
5.0%
2019
% of population
Note: internet users who access their Instagram account via any device at
least once per month
Source: eMarketer, Feb 2015
184685
www.eMarketer.com
Propelled by a nearly 60% gain in users, Instagram

surpassed Twitter to become the second-largest social
network in the US in 2014. By comparison, Twitters US
user base grew just 12.1% in 2014, eMarketer estimates.
US Social Network Users and Penetration, by Site,
2013-2019
millions, % change and % of population
Facebook
% change
% of population
Instagram
2013
2014
2015
2016
2017
2018
2019
147.5
152.4
157.1
161.4
165.7
169.2
172.0
4.2%
3.4%
3.0%
2.8%
2.6%
2.1%
1.7%
46.6% 47.8% 48.9% 49.8% 50.7% 51.4% 51.8%

98.9
106.2
111.6
% change
93.6% 59.9% 20.9% 15.1% 10.6%
7.4%
5.0%
% of population
12.7% 20.1% 24.2% 27.6% 30.3% 32.3% 33.6%
Twitter
40.2
64.2
77.6
89.4
48.4
53.1
57.6
62.0
66.1
69.1
% change
19.4% 12.1%
9.6%
8.6%
7.6%
6.6%
4.6%
% of population
13.6% 15.2% 16.5% 17.8% 19.0% 20.1% 20.8%
43.2
Pinterest
47.1
50.7
53.9
56.8
59.3
% change
34.5% 21.2% 11.4%
7.7%
6.3%
5.4%
4.2%
% of population
11.0% 13.3% 14.6% 15.7% 16.5% 17.3% 17.9%
34.9
Tumblr
13.7
% change
% of population
Total
42.3
17.7
20.0
22.2
46.2% 29.2% 12.9% 11.0%

4.3%
165.7
5.6%
173.6
6.2%
180.3
6.9%
186.0
25.4
26.6
7.2%
6.5%
4.8%
7.3%
7.7%
8.0%
195.9
200.1
23.8
191.2
Note: internet users who access their Facebook, Twitter, Pinterest,

Instagram and/or Tumblr accounts via any device at least once per month;
social networking audiences are not mutually exclusive; there is overlap
between groups
Source: eMarketer, Feb 2015; confirmed and republished, July 2015
184672
www.eMarketer.com
Teens in particular are heavily represented on Instagram.

In 2013, 67% of US smartphone users ages 12 to 17
used the service at least monthly, eMarketer calculates.
This year, 89.6% of that cohort will do so. Among
US smartphone users ages 18 to 24, 57.5% will use
Instagram this year, up from 39.0% two years ago.
US Instagram User Penetration, by Age, 2013-2019
% of smartphone users in each group
2013
2014
2015
2016
2017
2018
2019
0-11
15.1%
20.7%
19.9%
20.1%
20.7%
21.4%
22.3%
12-17
67.0%
87.4%
89.6%
90.9%
90.7%
91.1%
91.7%
18-24
39.0%
53.1%
57.5%
61.4%
64.9%
68.2%
71.1%
25-34
37.1%
48.1%
53.1%
57.5%
61.1%
63.3%
65.2%
35-44
17.1%
27.8%
32.0%
34.6%
37.1%
39.6%
40.2%
45-54
15.1%
21.4%
25.2%
27.5%
29.6%
30.9%
32.3%
55-64
13.2%
19.2%
22.0%
24.7%
26.5%
28.3%
28.8%
6.1%
9.1%
10.5%
12.0%
12.3%
12.5%
12.4%
27.4%
37.6%
40.7%
43.1%
45.0%
46.4%
47.1%
65+
Total
Despite Instagrams growth, its usage remains far below

that of its parent, Facebookat least among adults. In
comScore MobiLens May 2015 ranking of top apps, it
placed ninth, with 36.6% of US smartphone app users
ages 18 and older using it. Facebook had nearly double
that reach (70.2%), and several Google services as
well as Facebooks own Messenger ranked higher in
comScores list.
INTERNATIONAL GROWTH ISNT A GIVEN

Worldwide, Instagram has 300 million monthly active
users, according to its own tally, with more than 70%
coming from outside the US. eMarketer has yet to
publish a forecast for worldwide Instagram usage, but
its worth noting some key differences in our forecasting
methodology compared to Instagrams.
eMarketer estimates the number of individuals who
use a property monthly. We exclude business accounts
and multiple accounts by individual users, and discount
for potential fake accounts and bots. That explains why
eMarketers US user estimate is 77.6 million users this
year, while Instagrams figures imply a US user base of
90 million (and a non-US user base of 210 million).
Instagram is definitely growing, and its international user
base is substantial, but it is less popular around the world
than other social platforms. For instance, a February 2015
study by Reuters Institute for the Study of Journalism at
the University of Oxford found that 14% of internet users
in 12 countries examined used Instagram, compared
to 65% using Facebook, 57% on YouTube, 27% using
WhatsApp (another Facebook property) and 21%
on Twitter.
Although eMarketer considers Instagram to be a social
network rather than a messaging service, the fact that it
is predominantly a mobile app puts it in close competition
with those services.
According to GlobalWebIndex, Instagrams worldwide
user base grew more slowly than that of Pinterest or
Tumblr in the period from Q2 2014 through Q1 2015.
Instagrams active user tally rose 46%, compared to 97%
for Pinterest and 94% for Tumblr.
Note: internet users who access their Instagram account via any device at
least once per month
Source: eMarketer, Feb 2015
184753
www.eMarketer.com
Leading Social Media Sites/Apps Worldwide, Ranked

by Growth in Active Users, Q1 2015
% change vs. Q2 2014
Social Media Sites on Which UK Social Media Users

Have a Profile, Nov 2014
% of respondents
Facebook
Pinterest
97%
97%
Facebook only
Tumblr
48%
94%
Twitter
Instagram
26%
46%
WhatsApp
LinkedIn
24%
39%
YouTube
13%
YouTube
Twitter
8%
Instagram
Google+
7%
LinkedIn
Facebook
Google+
17%
16%
14%
12%
-8%
Note: ages 16-64; used in the past month via any device; excludes China
Source: GlobalWebIndex, "Social Summary Q1 2015," May 5, 2015
189709
www.eMarketer.com
Instagram faces a lot of competition outside the US,

especially as mobile messaging apps such as Snapchat,
Line and Facebooks own WhatsApp and Messenger
gain strength.
A November 2014 survey conducted by the Office of
Communications (Ofcom) UK found that 16% of UK
social media users had an Instagram profile, behind
Facebook, Twitter, WhatsApp and YouTube.
Snapchat
9%
Pinterest
5%
Flickr
4%
Myspace
4%
Note: n=1,093 ages 16+
Source: Office of Communications (Ofcom) - UK, "Adults' Media Use and
Attitudes Report 2015," May 11, 2015
190004
www.eMarketer.com
In Brazil, Instagram was the No. 3 app used by

smartphone owners, according to April 2015 research
from Opinion Box. With 36% smartphone user
penetration, it fell a significant distance behind WhatsApp
(86%) and Facebooks flagship app (76%) but ahead of
Facebook Messenger (30%).
In Asia-Pacific, Instagram faces even more competition.
Only 6% of internet users in South Korea reported using
it in a March 2015 survey by Waggener Edstrom
Asia-Pacific and YouGov, compared to 34% using local
service KakaoTalk and 29% using Facebook. Likewise, in
Japan, 13.5% of smartphone users were using Instagram
as of December 2014, according to Mobile Marketing
Data Lab. That was well behind the 59.6% using local
service Line, the 52% on Facebook and the 39.3%
on Twitter.
The good news for Facebook is that its umbrella strategy
of owning several social media platforms appears to
be working. But Instagram on its own will not be a
worldwide powerhouse on the level of Facebook.
INSTAGRAM IS NOT FACEBOOK

According to comScore data cited by RBC in a June
2015 report, more than 96% of US Instagram users
over the past 12 months were also Facebook users.
That extremely high figure runs counter to the common
perception that Instagram users dont tend to use
Facebook, or at least dont use it that often. However,
given that comScore defines usage broadly (i.e., a visit to
Facebook or Instagram at least once in a given month),
the overlap is probably reasonable.
Another study, by Cowen and Company, backs this up. It
found that 92% of the US Instagram users it surveyed in
June 2015 were also Facebook users.
Teens from high-income families were the most likely

of any income group to use Instagram, with 56% of
teens from the highest household income bracket using
it5 percentage points higher than any other income
groupaccording to March 2015 polling by GfK for Pew
Research Center.
Demographic Profile of US Teen Instagram Users,
March 2015
% of respondents in each group
Gender
Female
61%
Male
44%
Age
13-14
44%
15-17
58%
Despite the overlap, marketers should not assume people

use Instagram the same way they use Facebook.
Race/ethnicity
Black
64%
Hispanic
52%
From everything we look at, from our own behaviors to

how we do a content strategy across different platforms,
the strategy for Instagram is very different from
Facebook, said Kelly Meyers, senior creative strategist
at agency Code and Theory. The content thats OK on
Instagram is very different for Facebook, and people
behave very differently on the two platforms.
White
50%
Instagrams Squires identified several areas where

Instagram differs from its parent:
Instagrams skew toward teens from high-income

households diverges significantly from Facebooks teen
audience, which leans toward lower-income household
brackets, according to Pew. Of teens in US households
earning $49,000 or less, more than three out of four are
on Facebook. A possible cause of this income-based
discrepancy: Facebook usage is not reliant on smartphone
ownership, unlike Instagram usage.
Community: Theres this very distinct sense of

community [on Instagram] that just continues to get
stronger and stronger as the years have gone by,
he said.
Visuals: Its photos and video, versus other
platforms where there is text content and a variety of
other formats.
Creativity: The creative tools, like the filters and the
image tools that are available, have driven people to do
much more interesting, aesthetically pleasing things
inside the environment.
Discovery: People are looking for inspiration and
discovery. And in many cases the entities or people that
they follow are not people that theyve met in the real
world. These are passion points for them.
Household income
<$30K
51%
$30K-$49K
50%
$50K-$74K
47%
$75K+
56%
Source: Pew Research Center, "Teens, Social Media & Technology Overview
2015" conducted by GfK, April 9, 2015
188374
www.eMarketer.com
Another key difference is the ability to have several

accounts on Instagram, something that Facebook
frowns upon. Instagram users can set up accounts
for various passions or friend groups. Rather than
funneling everything into one identity, as people tend to
do on Facebook, Instagram lets them express several
sides of themselves independently. For advertisers
considering how to target people on Instagram, this is an
important distinction.
Demographically speaking, not only is Instagrams user

base younger than Facebooks, it also trends toward
higher incomes, at least among US teens.
BRAND ENGAGEMENT IS HIGH

FOR NOW
Marketers interest in Instagram has been fueled by
studies showing high engagement with both organic
marketing and paid ads. But it is not certain that this
will continue when more marketers and their ads enter
the system.
On the organic side, one factor that has led to high brand
engagement is that Instagram users have the potential
to see every post from accounts they follow (provided
they log in regularly). This automatically leads to higher
engagement. In contrast, Facebooks algorithm reduces
the likelihood of people seeing brands organic posts.
For example, home furnishings retailer Dot & Bo sees
similar numbers of likes on its organic posts on
Instagram and on Facebook, even though it has only
8,800 followers on Instagram vs. 620,000 on Facebook,
said Allyson Campa, the companys vice president of
marketing. Similarly, a Mini USA spokesperson told
eMarketer in June 2015 that more than 20% of the
automakers followers on Instagram typically see posts
from the brand, far better performance than it sees
on Facebook.
In a Q2 2015 study by L2 Think Tank, US fashion brands
saw an engagement rate of 0.63% on Instagram, well
ahead of the 0.09% on Facebook and 0.02% on Twitter.
The definition of engagement rate varied across the
platforms, however, with likes and comments counted
on Instagram; shares, likes and comments included
on Facebook; and favorites and retweets (but not replies)
on Twitter.
Social Media Metrics for US Fashion Brands, by Site,

Q2 2015
Facebook Instagram Twitter YouTube
Brand adoption
% change vs. same
period of prior year
"Likes"/followers/
subscribers (thousands)
99%
96%
94%
87%
11%
-3%
2,170
1,014
880
25
% change vs. same

18%
160%
40%
63%
Engagement rate*
0.09%
0.63%
0.02%
% change vs. same

6%
-18%
-9%
Views** (millions)
13.0
% change vs. same

44%
Post frequency (average

posts per week)
7.4
10.4
21.9
0.7
% change vs. same

-3%
36%
16%
-6%
Note: among 79 fashion brands examined by L2 Think Tank; *includes

comments, "likes" and shares for Facebook, "likes" and comments for
Instagram, favorites and retweets for Twitter; **includes effect of video
removal from brand channels
Source: L2 Think Tank, "Insights Report: Fashion: Social Media," May 21,
2015
191330
www.eMarketer.com
Shareablee, a social analytics company, found that

consumer actions (such as favorites and comments)
for brand pages on Instagram more than doubled in the
first quarter of 2015 compared to the previous year. By
comparison, actions increased 32% on Twitter and 27%
on Facebook.
Growth in Engagement* of Posts on Facebook,
Instagram and Twitter Among US Brand Pages,
Q1 2015
% change vs. Q1 2014
Instagram
Twitter
Facebook
108%
32%
27%
Note: represents activity on pages tracked by Shareablee, broader industry

metrics may vary; *includes comments, favorites, "likes," retweets and
shares
Source: Shareablee as cited by Advertising Age, June 22, 2015
192671
www.eMarketer.com
Organic engagement on a given Instagram post is

leaps and bounds above its counterpart on Facebook,
on Twitter, on Pinterest, on any of them, said Pineiro of
Big Spaceship. The reasons youll get numbers that
are so high is that you see every piece of content that
youre subscribed to, and its really easy to tap once to
like something.
In addition to showing strong organic engagement, ad

engagement has also proven high, at least according
to several case studies published by Instagram. In a
June 2015 blog post, Instagram cited several examples
of advertisers in Canada achieving brand lift of 14 to
45 points.
If you think about ad recall on the platform, its nearly
three times what you would see across the industry,
generally speaking, Instagrams Squires said.
Whether those sorts of metrics stay high will depend
on how the company handles the ad rollout and on how
marketers craft their pitches. Thus far, Instagrams slow
and careful approach has cultivated a positive experience
for both brands and users. The introduction of a lot more
advertising, especially ads that seem out of place in the
Instagram environment, could irritate users and lead to
usage declines.
MAKING THE MOST OF

INSTAGRAM ADS
After a slow and carefully managed beta test,
Instagram will soon open its doors to more
advertising. But marketers should not expect those
doors to be wide open.
Yes, Instagram will accept direct-response advertising,
and it will let advertisers use a self-serve platform or work
with an API partner to place ads. But the company wont
be letting just any advertiser in.
Instagram has been very careful about opening
up the doors to advertising, and theyve been very
discriminating, and rightfully so, to protect the integrity
of the space, said Janet Keller, the advertising, digital,
social media and CRM manager for General Motors GMC
division, one of the early brands to test advertising on
the platform.
And while Instagram wont individually vet and approve
ads as it did during the beta test, its algorithm will be
trained to ensure a really high-quality experience for
individuals, said Squires. Signals such as negative
feedback rates, ad engagement rates and comments
on those ads are fed back into the system. All of our
models will get trained to deliver the most relevant, most
interesting types of creative.
Among the key issues that marketers will face as they
launch or expand their advertising on Instagram will be:
How to insert a direct-response pitch into what was

previously only a branding environment
How to maintain the high bar of creativity that users
and brands have come to expect
How deeply to incorporate Facebook targeting
into Instagram
How to measure results and compare Instagram
against other platforms
When and how to incorporate a shop now button
What follows is an in-depth look at these challenges.
THIS ISNT TYPICAL

DIRECT-RESPONSE ADVERTISING
Instagram is promoting a more muted approach to direct
response, one that takes into account cues from users
before initiating a pitch.
Advertisers will be able to add four types of buttons to
their Instagram ads: learn more, install now, sign up
and shop now. Each button will open up a browser that
takes the user to a page on the advertisers website, or to
a location within one of the mobile app stores. Users will
be able to return to Instagram by tapping a back button or
X, depending on their device.
The ability to leave Instagram and then easily return is
new; previously, the only way a brand could direct users
to its website was by referring them to its profile page,
where users could then click a hyperlink.
As part of the expansion into direct response, Instagram
is also changing the way advertisers buy ads. Currently,
they must buy directly from Instagram on a fixed-price
basis with guaranteed delivery.
By early autumn, advertisers will be able to use the same
methods and pricing structures as on Facebook. They
will be able to work with a wide range of API partners,
including 4C, Ampush, Brand Networks, Kenshoo,
Laundry Service, MediaVest, Nanigans, Olapic, Resolution
Media, Salesforce.com, SocialCode, SocialMoov and
Unified Social. They can also buy through Facebook tools
such as Power Editor. Fixed-price ads will still be available.
Youll have all the different bid models and pricing
models that are available on the Facebook side also
available to you on the Instagram side, Squires said.
For those considering direct-response advertising on the
platform, here are some points to keep in mind:
IMAGE MATTERS: [Instagrams] a very unforgiving
environment if youre going in there with an image that
looks stale or spammy, said Kevin Lange, senior vice
president of social media at Starcom MediaVest. Theres
going to be some tried-and-true tactics, especially on the
direct-response side, that arent guaranteed to work.
INVENTORY MAY BE CONSTRAINED, LEADING TO HIGHER BID

PRICES: In interviews, executives expressed concern that
Instagram will keep its ad inventory so limited that the
only direct-response advertisers that will win auctions will
be those with deep enough pockets to place higher bids.
Instagram declined to comment on ad load, but keeping
prices high would rule out many of the internets more
typical direct marketers.
THINK SUBTLE: Instagrams buttons are small, and the
actions they encourage are very specific. They are
designed to support only a few types of engagement.
Advertisers might be wise to take cues from how
Instagram has incorporated the existing learn more
button into its carousel ad format. There, the button does
not appear on the first image, only on succeeding images.
The user must show a certain level of engagement in
order to even see the button.
They obviously dont want it to be a treasure trove
of gaming ads where people are just going to install
Candy Crush all the time, said Chris Jacob, director of
product marketing for Social.com and Active Audiences at
Salesforce.com.
EVEN WITH SUBTLE PITCHES, USERS MAY STILL REBEL: The
reason some Instagram users started using the service
in the first place was to avoid the ad clutter of places like
Facebook. They may not react positively to new types of
ads on Instagram.
Instagram is a completely closed system, said Pineiro
of Big Spaceship. Many users report that they love
Instagram because theyre not being marketed to. I feel
that the core Instagram users, those heavy users, are
going to be quite put off by the idea that theyre going to
start being led to other places.
TARGETING WILL BE IMPORTANT: There wont be much
love for loud or aggressive direct-response pitches. If,
on Instagram, youre offering some value and its well
targeted, its relevant and it adds to the conversation, then
I think people are likely to react well to it, said Strother
of Lenovo.
CREATIVITY WILL STILL BE VALUED

AND REWARDED
Instagram and its advertisers to date have worked hard
to ensure that their pitches meet a high bar of creativity.
Some have likened them to the glossy print ads in a
high-end travel or fashion magazine.
Setting a high bar was quite intentional, and several
executives interviewed by eMarketer reported that they
received extensive help from Instagram when crafting
their brand campaigns.
For example, GMC worked closely with Instagram for
an ad that used the carousel format. We collaborated
with them directly and said, Hey, how can you help
us, knowing what you know with the community, and
knowing what you know in terms of what works with this
community? said Keller.
Instagram helped come up with the ads unique
format, which turned three carousel images into one
panorama-type image, Keller said.
Now, Instagram will move away from that sort of heavy
involvement. An algorithm will take over those duties, and
relevancy and creativity will be two key factors.
Executives identified several best practices for eMarketer.
These apply to both brand ads and direct response.
PRACTICE FOR PAID ADVERTISING BY HONING YOUR
ORGANIC INSTAGRAM PRESENCE: Know what types of
images your customers are already looking at and taking
and sharing, so that by the time you turn on advertising,
the creative piece will come more naturally, said Matt
Collins, vice president of marketing at Ampush.
DONT REUSE: Instagrams distinctive square image
format is only one of many reasons marketers cant
(and shouldnt) try to recycle ads from other campaigns.
Successful brands have developed unique assets
specifically for Instagram.
Marketers shouldnt say, Hey, I just bought a space on
Instagram, let me recycle a print ad, digitize it and put it
on Instagram, said Keller of GMC. As a marketer, it does
take a little bit more thought, and a lot more heavy lifting;
and it takes a lot more resources and time.
GO FOR THUMB-STOPPING CREATIVE: When promoting

its TV series The Flash last year, The CW constructed a
15-second video that showed a child on an airplane that
was speeding down the runway, interspersed with quick
cuts of Flash imagery.
To try and do something that feels like Instagram and
not like an ad has been a creative challenge for us, said
Caty Burgess, vice president of media strategies at
The CW Television Network. We talk a lot about what
thumb-stopping creative is.
CONSIDER USING A DIFFERENT TEAM: Rather than using
digital creatives and digital buyers, marketers may want
to use resources more familiar with branding, such
as those who work on TV campaigns, said Jacob of
Salesforce.com. If those folks get involved in Instagram,
then I think youll see a higher bar [of creativity] than you
might see from the pure digital execution ads you see in
digital display or the pure direct response you might see
on Facebook or Twitter.
EXPECT SOME CREATIVE LEEWAY: Because Instagram
wont be reviewing and approving each ad, the reality
is that there will probably be somewhat more flexibility
on the creative front. A 13-year-old boy who likes
videogames is not likely to have as finely tuned aesthetics
as a 34-year-old man who follows fashion designers
on Instagram, for example, so the creativity bar may
be relative.
But Instagrams Squires was reluctant to give over too
much of the control to marketers. With the ads rollout,
advertisers will have the flexibility to create something
that is very relevant for the individualand thats in line
with the tone that has been set in the platform, he said.
FACEBOOK TARGETING IS A HUGE STEP

FORWARD, BUT ALSO A RISK
Advertisers on Instagram will soon be able to target
ads using many of the same capabilities that Facebook
offers. Given that the current targeting on Instagram is
very broad (only gender, age and geography), this is a big
step forward.
One important new feature will be the ability to use
Custom Audiences, an ad product that has been a hit with
many Facebook advertisers. Custom Audiences allows
marketers to bring in their own information (such as an
email subscriber list) and target those people.
The connection to Facebook targeting is a primary reason

why many marketers are interested in Instagram.
It could be a really powerful one-two punch, said Lee
Nadler, marketing communications manager at Mini USA.
The ability to have essentially the same interface that
you have when youre doing Facebook advertising,
along with the same kind of data characteristics from a
targeting capability perspective, will make advertising
on Instagram a lot more effective, said Jim Davis, vice
president of consumer engagement at Ugg Australia, a
unit of Deckers Brands.
But some executives expressed concern over the use
of Facebook information for targeting on Instagram. As
described above, many people use the two services in
different ways, and their activities may not match up.
If I were to ever see an Instagram ad based off my
Facebook activity, I would be able to tell because my
behaviors are so different between the two platforms,
said Meyers of Code and Theory. I think consumers
understand that banner ads follow you around the
internet. But Instagram is this pure place, and I dont think
its ready for that type of targeting.
According to Squires, theres a combination of
signals that go into the targeting, he said. The demo
targetingage, gender, geographyis very accurate
because identity is very strong on Facebook. There are
signals on likes and interests and psychographics that
come from the Facebook side. There are also signals that
you get from the Instagram side.
How should marketers approach targeting on Instagram?
Slowly, at least at first, until users get used to the idea.
FACEBOOK DATA IS ONLY ONE PIECE OF THE MIX: I think the
most valuable targeting is going to be less about what
theyre doing on Facebook and more about what we
know about that audience and what theyre passionate
about or where theyre at in the product or purchase cycle
for a given brand, said Lange of Starcom. Its definitely
less about retargeting specific behaviors on Facebook or
from another site.
This spring Mini launched a campaign on Instagram to

promote its Countryman compact SUV. The automaker
teamed up with skateboarder Tony Hawk and his family in
a series of ads designed to promote the Countryman as a
family-friendly option.
Mini tracked which Instagram users were exposed to the
ads and followed up with ads that appeared when those
users were on Facebook. Those that interacted with a
Facebook ad were then retargeted with additional Mini
advertising on Facebook.
You can look at Instagram as an opportunity to start a
conversation and get somebody inspired quickly, and
then you can retarget them on Facebook, said Nadler.
With Facebook, they can go deeper. You can show
a longer-form video, you can engage with them in a
different way, you can get them to sign up for things.
RECOGNIZE THAT TARGET AUDIENCES WILL BE SMALLER:
Facebook is so large that even very specific targeting can
still yield a sizeable audience. But since Instagram is so
much smaller, that wont be the case there.
Facebook gives you so much specificity you can really
spend a lot of time crafting the right target audience,
said Eli Perez, a social media analyst at AKQA. It will
be interesting to see what sort of carryover that has to
Instagram from both a qualitative perspective and also
a quantitative, and how big these audiences are going
to be.
MEASUREMENT IS IMPROVING BUT NOT

FULLY DEVELOPED
Marketers generally agree that Instagrams measurement
capabilities need work. In a December 2014 Cowen
survey asking senior ad buyers in the US to identify
the benefits of buying advertising on Instagram, only
6% cited return on investment (ROI) and just 4%
cited measurement.
CONSIDER USING INSTAGRAM TO CAPTURE ATTENTION AND

THEN FACEBOOK FOR FOLLOW-UP: Mini is one marketer that
has experimented with doing a branding campaign on
Instagram and then retargeting the users exposed to the
campaign on Facebook.
Benefits of Advertising on Instagram According to US

Senior Ad Buyers, Dec 2014
% of respondents
User base (in size)
70%
Mobile capabilities
64%
Audience targeting capabilities
15%
ROI
6%
Competition
4%
Measurement
4%
No potential issues
2%
Campaign set-up
0%
Other
33%
Source: Cowen and Company, "Annual Ad Buyer Survey III: 2015 Outlook,"
Jan 12, 2015
184483
www.eMarketer.com
I think what weve struggled with on the paid side of

Instagram is that its hard to really understand where
the value might come from, said Davis of Ugg Australia.
We try to track some of the same kind of things that
everyone else does, but weve seen a really mixed bag on
all those measures.
That lack of visibility, combined with the high price of
Instagrams brand campaigns, has kept some advertisers
on the sidelines during beta testing.
Its a high-dollar ask compared to what you can do on
other platforms. And you dont get a lot of knowledge
back from it, said Brian Austin, creative strategist at Code
and Theory. The insights and the reporting are what
make the advertising on social so useful. You get very
sharp demographic learnings and key takeaways that you
can apply to future spend, future strategies. Instagram
has always been a little bit of a blank wall in that regard.
The good news is that it will get betterand the goal
is to make Instagrams measurement tools comparable
with Facebooks.
There will be measurement parity with Facebook
from brand advertising all the way to direct response,
said Squires.
That sort of statement will appeal to potential advertisers
like Sven Alwerud, CEO and co-founder of Jelly
Skateboards. Im hoping [the measurement capabilities
are] pretty much the same as for Facebook ads because
Im already used to that and so are thousands of other
Facebook ad experts, he said.
So far, every brand advertiser that has used Instagram

has gotten a Nielsen Brand Effect study (which tracks
brand metrics such as awareness, attitude, intent and
preference in real time) as part of their ad package.
Instagram has conducted studies for more than
475 campaigns.
As Instagram rolls out its action buttons, there will
be additional measurement functionality around those
specific actions, around conversion and purchase
behavior, Squires said.
Because Instagram will be able to tap into what Facebook
has already developed, that should quicken the pace at
which advertisers become comfortableassuming the
metrics continue to be as positive as the brand-oriented
ones the initial advertisers have seen.
Weve seen strong results across the board against
brand lift as well as message recall metrics, Starcoms
Lange said. But where I would really like to see more
opportunities from Instagram is in facilitating multi-touch,
multichannel attribution, whether thats looking at online
KPIs or conversions, or in-store sales.
SHOP NOW HAS ITS LIMITATIONS; APP

INSTALL ADS MAY DO BETTER
Like its social media brethren, Instagram will be launching
a buy button.
When users click either the shop now or install now
button on an ad, they will be taken either to a retailers
webpage embedded within Instagram or to an app
store. The transaction will therefore take place on the
advertisers website or in the app store. Instagram will not
take a cut of revenue from salesadvertisers will pay for
the ad to promote whatever product they want to sell.
It is difficult to imagine that retailers will get more than
the occasional sale from Instagram, however. In the US
and Western Europe, only 4% of digital buyers surveyed
by UPS in October 2014 said they used Instagram to
help decide which products to purchase. Asia-Pacific
respondents were similarly disinclined, at 6%. Brazil
ranked higher, at 19%, but buyers there appeared to be
more willing to rely on social media for shopping advice
than those in other countries and regions.
Social Networks Used by Digital Buyers in Select

Countries/Regions When Deciding Which Products to
Purchase, Oct 2014
% of respondents
AsiaPacific*
Brazil
Mexico
US
Western
Europe**
23%
65%
56%
20%
21%
Google+
9%
35%
31%
8%
12%
Instagram
6%
19%
9%
4%
4%
Twitter
5%
22%
17%
6%
6%
LinkedIn
3%
12%
7%
3%
3%
Pinterest
3%
9%
10%
3%
Other
27%
14%
20%
1%
2%
Don't use any social

networks (for
product purchases)
43%
16%
23%
65%
65%
Facebook
Note: ages 18+ who made at least two digital purchases in a typical threemonth period; *includes China, Hong Kong, Japan, Singapore and South
Korea; **includes France, Germany, Italy, Netherlands, Spain and UK
Source: UPS, "Pulse of the Online Shopper: A Customer Experience Study"
conducted by comScore Inc., March 3, 2015
187203
www.eMarketer.com
Instagrams partnership with image monetization

platform Curalate will continue. Curalate offers a concept
called Like2Buy to retailers looking to sell products
via Instagram.
However, once a user clicks through to the advertisers

website, they may be able to navigate to additional
products and purchase them from there.
APP INSTALL ADS MAY BE A BETTER FIT: eMarketer
estimates that $3 billion will be spent on mobile app
install advertising in the US this year, and Facebook is a
leading recipient of that spending. App advertisers that
have grown accustomed to using Facebooks extensive
targeting capabilities will appreciate being able to use the
same on Instagram.
The easier we can make it for our customers to access
our product, the better, said Cara Friedman, social
media marketing manager at ClassPass, which has been
testing ads with an Install Now button to prompt users
to download the companys fitness class scheduling app.
Technically, right now you can install from Instagram if
you go to our profile and click on our link. The fewer clicks
we can have to get people to do what theyre trying to
accomplish, the better.
We believe that a lot of brands and retailers will want to

test what investments theyll want to make in Instagram
advertising by using Like2Buy, said Matthew Langie,
Curalates chief marketing officer.
Here are a few ways to think about the ecommerce
potential on Instagram:
ITS NOT FOR THE EVERYDAY: Rare, unusual or eye-catching
items will likely spur some users to shopmore so than,
say, grocery staples. Having the ability to just tap, see
where it is, and buy it right there is one example where
this technology is a plus, said Austin of Code and Theory,
who cited NikeLabs special-edition shoes as one type
of product that might sell on Instagram. We all know
we can go to the grocery store for whatever breakfast
cereal is out there, but when these small-batch or unique
products [get promoted on Instagram] its really, really
important to be able to make a seamless transition from
awareness to purchase.
DONT PLAN ON PROMOTING A LOT OF PRODUCTS: The
shop now button doesnt mesh well with advertisers
that want to display a lot of products, or that want to
showcase their entire catalog. Most advertisers will want
to highlight just one or perhaps a couple of products and
drive commerce that way.
EMARKETER INTERVIEWS
CW Leverages Instagrams Autoplay Ads to Promote
The Flash
Caty Burgess
VP, Media Strategies
The CW Television Network
Interview conducted on June 18, 2015
GMC Aims to Increase Brand Familiarity via

Instagram Collaboration
Janet Keller
GMC Advertising, Digital, Social Media and
CRM Manager
General Motors
Instagram to Open Platform to All Advertisers This Fall

Jim Squires
Director, Market Operations
Instagram
Direct-Response Ads Pave Way for Monetization

of Instagram
Rod Strother
Director, Worldwide Digital and Social
Lenovo
Sven Alwerud
CEO and Co-Founder
Jelly Skateboards
Brian Austin
Creative Strategist
Code and Theory
Allyson Campa
VP, Marketing
Dot & Bo
Matt Collins
VP, Marketing
Ampush
Jim Davis
VP, Consumer Engagement
Ugg Australia
Cara Friedman
Social Media Marketing Manager
ClassPass
Chris Jacob
Director of Product Marketing, Social.com and
Active Audiences
Salesforce.com
Kevin Lange
SVP, Social Media
Starcom MediaVest Group
Matthew Langie
CMO
Curalate
Jessica Lauria
Senior Director, Brand Communications
Chobani
Kelly Meyers
Senior Creative Strategist
Code and Theory
Marshall Manson
Managing Director, EAME, Social@Ogilvy
Ogilvy and Mather
Interview conducted on April 14, 2015
Lee Nadler
Marketing Communications Manager
Mini USA
Eli Perez
Senior Analyst
AKQA
Victor Pineiro
Waggener Edstrom Asia-Pacific
VP, Social Media
YouGov
Big Spaceship
Cait Pluto
Associate Manager, Customer Acquisitions
ClassPass
RELATED EMARKETER REPORTS

Facebook Advertising Outside North America: Trends
for 2015 and Beyond
Pinterest for Marketers: What You Need to Know
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Cliff Annicelli
Joanne DiCamillo
Dana Hill
Stephanie Meyer
Kris Oser
Ezra Palmer
Heather Price
John Rambow
Allie Smith
Managing Editor, Reports

Senior Production Artist
Director of Production
Senior Production Artist
Deputy Editorial Director
Editorial Director
Senior Copy Editor
Senior Editor
Director of Charts
Video Advertising: How Facebook, Twitter, Instagram,

Tumblr and Snapchat are Changing the Rules
RELATED LINKS
Advertising Age
Canaccord Genuity
comScore, Inc.
Cowen and Company
GfK
GlobalWebIndex
JMP Securities
J.P. Morgan
L2 Think Tank
Mobile Marketing Data Lab
Office of Communications (Ofcom) UK
Opinion Box
Pew Research Center
Raymond James
RBC Capital Markets
Reuters Institute for the Study of Journalism at the
University of Oxford
Salesforce Marketing Cloud
Shareablee
Strata
Trefis
University of Massachusetts Dartmouth Center for
Marketing Research
UPS
The leading research firm for marketing in a digital world.
Coverage of a Digital World

eMarketer data and insights address how consumers
spend time and money, and what marketers are doing to
reach them in todays digital world. Get a deeper look at
eMarketer coverage, including our reports, benchmarks and
forecasts, and charts.
Confidence in the Numbers

Our unique approach of analyzing data from multiple
research sources provides our customers with the most
definitive answers available about the marketplace.
Learn why.
Customer Stories
The worlds top companies across every industry look to
eMarketer first for information on digital marketing, media
and commerce. Read more about how our clients use
eMarketer to make smarter decisions.
Your account team is here to help:

Email research_requests@emarketer.com to submit a request for research support, or contact
accounts@emarketer.com or 866-345-3864 to discuss any details related to your account.

EMarketer Instagram Advertising-What Marketers Need To Know

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

EMarketer Instagram Advertising-What Marketers Need To Know

Uploaded by

Copyright:

Available Formats

INSTAGRAM

INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW

Advertisers will be eager to try Instagrams new

Instagram Net Mobile Ad Revenues Worldwide,

In 2017, Instagram will have higher US net mobile

WHATS IN THIS REPORT? This report features eMarketers

Instagram net mobile ad revenues

KEY STAT: After a successful test of brand advertising,

INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW

2015 EMARKETER INC. ALL RIGHTS RESERVED 2

NEW AD PRODUCTS WILL LEAD TO

% of non-US Facebook net mobile ad revenues

% of Facebook net mobile ad

Note: paid advertising only; excludes spending by marketers that goes

As the percentages above imply, international revenue is

Note: paid advertising only; excludes spending by marketers that goes

In a sign of just how quickly Instagram is expected to

INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW

2015 EMARKETER INC. ALL RIGHTS RESERVED 3

Instagram, Google and Twitter Net US Mobile Display

Social Media Sites* Where US Marketers Would Be

Several investment banks and financial entities have

Cowen and Company, July 2015

eMarketer, July 2015

Raymond James, June 2015

JMP Securities, June 2015

Trefis, May 2015

Canaccord Genuity, June 2015

Source: eMarketer, July 2015; various, as noted, 2015

THE DEMAND IS THERE

INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW

Note: n=306; "somewhat interested"; *excluding Facebook, Twitter and

Another investment bank survey, conducted in December

2015 EMARKETER INC. ALL RIGHTS RESERVED 4

Salesforce Marketing Cloud found in a November 2014

Key things to know about Instagram usage include:

Note: currently using

Instagram is a fast-growing property. Its user base

WHAT MARKETERS NEED TO

Among the fast-growing, privately owned US companies

The number of US users is substantial and growing.

US USER BASE IS SUBSTANTIAL AND

INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW

2015 EMARKETER INC. ALL RIGHTS RESERVED 5

Propelled by a nearly 60% gain in users, Instagram

46.6% 47.8% 48.9% 49.8% 50.7% 51.4% 51.8%

93.6% 59.9% 20.9% 15.1% 10.6%

12.7% 20.1% 24.2% 27.6% 30.3% 32.3% 33.6%

13.6% 15.2% 16.5% 17.8% 19.0% 20.1% 20.8%

34.5% 21.2% 11.4%

11.0% 13.3% 14.6% 15.7% 16.5% 17.3% 17.9%

46.2% 29.2% 12.9% 11.0%

Note: internet users who access their Facebook, Twitter, Pinterest,

Teens in particular are heavily represented on Instagram.

Despite Instagrams growth, its usage remains far below

INTERNATIONAL GROWTH ISNT A GIVEN

INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW

2015 EMARKETER INC. ALL RIGHTS RESERVED 6

Leading Social Media Sites/Apps Worldwide, Ranked

Social Media Sites on Which UK Social Media Users

Instagram faces a lot of competition outside the US,

In Brazil, Instagram was the No. 3 app used by

INSTAGRAM ADVERTISING: WHAT MARKETERS NEED TO KNOW