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Instagram Approaches the 10 Year Mark with Stunt in Growth

author image Written by: Nicole McCormick           Categories - In The News

Instagram User Growth Drops While Ad Revenues Increase

Building an active user count of over 1 billion people in just 10 years, Instagram is often hailed as not only a cultural phenomenon, but a platform that defined and revolutionized social media over the past decade. But you wouldn’t know this based on the platform’s recent stunt in growth at the end of 2019. According to a report from market research company eMarketer, Instagram’s user growth only grew by a mere 6.7 percent in 2019. While this may not sound all that concerning, what makes the data surprising is that the platform’s growth levels have dropped to a single digit percentage for the first time since Instagram was founded in 2010. In comparison, Instagram’s growth in 2018 was reported to be 10.1%, and eMarketer estimates that Instagram will continue to grow even slower than the platform had previously projected. Source: eMarketer “Growth will be at 4.5% in 2020, revised down from 5.4%, and in 2021, it will be 3.2% instead of 4.1%,” said the report.

Why This Is Happening

So, why the sudden decline in growth? One of the main factors according to eMarketer is increased competition from platforms like Snapchat and TikTok, along with older age groups’ lack of desire to join Instagram.  In fact, the one area where Instagram is experiencing larger than expected gains in the U.S is users that are aged 25 to 34. But even still, this growth is not expected to increase much in the next few years.

What Does This Mean for Advertisers?

Fortunately for advertisers, this likely won’t have much of an impact on ad revenue, as Instagram is still expected to hold onto its position as the second-most used social media platform behind Facebook. “Instagram is doing really well—it is the second-most internet-penetrated social media platform in the US behind Facebook, and despite increased pressure from competition, we expect it to maintain its second-place position with a good gap from the rest of the platforms,” said eMarketer.  In fact, Instagram’s ad revenues are expected to continue growing at high double-digit rates and increase from $9.45 billion in 2019 to $13.86 billion in 2020. This can be partially attributed to the fact that Instagram has opened up more inventory for advertisers with newly introduced ads in different parts of the app, like the Discover tab. The platform is also currently beta testing shoppable ads, which are expected to play a major role in future growth of ad revenue. 

Nicole McCormick

Nicole is a wordsmith wizard, passionate about the written word and an avid storyteller who uses creatively crafted prose to help bring your brand’s story to the next level. A former journalist with writing credits in both local and national news publications and a few newspaper awards under her belt, Nicole now enjoys telling your stories and finding new and creative ways to create valuable content that resonates with audiences in the digital landscape.

Instagram’s Main Feed Going Full Screen

06/21/2022

Instagram will soon begin testing a screen redesign for its main feed, Meta’s CEO Mark Zuckerberg announced via an Instagram story.

He expressed that “photos are still an important part of Instagram” and said that Instagram was trying to find ways to improve how photos will be shown in this full-screen feed. He didn’t specify or give any details on how they’ll do it.

However, it’s funny to see two opposing opinions and statements, because we clearly remember Adam Mosseri saying how Instagram is no longer a photo-sharing app and how videos are top priorities.

Here’s what Zuck had to show us:

Photo Source: Instagram Screenshot obtained by Search Engine Journal

As you can see from the picture, a small area at the bottom is reserved for navigation, every other element is on top of the content. Some say it looks very much like TikTok. We’ll see what this will look like with photos since they’re not currently being uploaded in full-screen format dimensions.

Techcrunch reports that in the test version, Instagram applied a blurred, gradient border to make the photos blend in. People complained about it so we’ll just have to wait and see what Insta will do about that.

Read More: Instagram Introduces Digital Collectibles

Top Latest Instagram Updates

Instagram has been working pretty hard to keep us on our toes. We’re caught looking to see what they have in mind not only for competing with TikTok but for staying relevant and up to date with the time by developing and offering new features for creators, parents, and regular mortals like you and me, etc.

Check out these recent updates Instagram had in store.

Parental Control

This feature is rolling out in seven more countries in the world – the UK, Japan, Australia, Ireland, Canada, France, and Germany. With this feature, parents can start supervising their child’s Instagram account and set periods during the week when the child can use the social media platforms.

Parents will also be given information on when their child reports something on Instagram. Both parents must agree to turn on the feature.

Take A Break Feature & Nudges

This feature encourages creators to raise awareness about mental health and lets you know how much time you’ve spent on Instagram. It will also encourage you to do something else instead of scrolling through your feed.

You will be notified if you spend too much time on one topic and Instagram will suggest you explore another topic. This might be a cool way of discovering new things on Instagram.

Read more: Instagram Updating Its Ranking Algorithm

Features For Creators

As more creators use Instagram, the platform has rolled out tons of new features designed specifically for them.

Read More: Instagram Announces New Methods For Creators To Earn Money

 

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Instagram Introduces Digital Collectibles

05/10/2022

Instagrams’s NFT display options are finally getting their initial release, almost a year after they first started working on it.

Instagram chief Adam Mosseri announced that the company is holding initial testing of its new NFT features with a select group of US creators. Integrations will be offered for Ethereum and Polygon, with Flow and Solana to follow. To verify ownership, NFT owners will be able to connect their Rainbow, Trust Wallet, and MetaMask accounts. Instagram says that there will be no fees associated with posting or sharing a digital collectible on Instagram.

Digital Collectibles Feature

The feature includes:

  • Connecting a digital wallet – after connecting their wallets, creators and collectors will be able to choose which NFT from their wallet they want to share on Instagram
  • Sharing digital collectibles – once shared, the digital collectible will have a shimmer effect and will be able to show public information, like the description of the NFT.
  • Automatic tagging of both the creator and collector – if their privacy setting allows it, both creators and collectors can be automatically credited in the digital collectible post.
Read More: Facebook Launches New NFT Display Options
Photo Source: Instagram Official Blog

Users will be able to show their NFTs on the main feed, within Stories or in DMs. there will also be a new tab added, that will have a tick inside of a hexagon which will mean that the NFTs are verified. The same hexagon tick will be included on NFT images within the main post feed.

Read More: Meta Introducing New Monetization Tools For Creators
Photo Source: Instagram Official Blog

Eventually, Instagram plans to integrate bidding into the process as well.

All of this seems like a great effort to keep up with the market even though the NFT trading has been declining recently. According to a recent report in The Wall Street Journal, NFT sales declined by 92% since September, while active wallets declined by 88% since November.

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