Thispaper compares the use of business analytics to understand the position ofInstagram and Facebook and their position within the industry. Both socialmedia applications are immensely popular and have a very large following. Thislends itself to a possible large market platform for many businesses, be theyonline or local. From small business, large industry, and the individualentrepreneur, to any marketing department of any business, a place within thesetwo apps is a very coveted position to have. Facebook has almost two billionusers actively using or scrutinizing the application daily (Smith, 2017).
Facebook has purchased Instagram yet still they have an individual following ofover 400 million active users. A very high percentage of users will use or haveused the platform for their active advertisement. In2013 Facebook earned 13 billion in mobile advertisement, with a maintainedaverage of $11.96 per user. With an active 50 million Facebook small businesspages 2.5 million pay to be advertisers.
Paid advertisement on the application may be the only way to reach andpromote for the forty percent of Facebook users that do not like a brand page. Videoadvertising achieves the highest rate of engagement and mobile ads account formost of the Facebook’s advertising revenue (Smith, Brandwatch, 2016). Instagramis a popular photo/video sharingapplication that has been bought by Facebook. It has over one million monthlyadvertisers and the platform is unique because it reaches people where theyshare their own passion. Big business is generated between the 600 millionmonthly users and over one million advertisers. Through its advertising theapplication is forecasted to generate $3.64 revenue globally this year.
“Bycomparison, Facebook generated $8.81 billion in revenue in its latest quarter.Instagram’s ad business has grown at a rapid pace since they first venturedinto selling advertisements in 2015. Those numbers are significant in today’smarket and it is believed that this good fortune is maintained mainly byFacebook’s network of over 4 million advertisers alone and the expertise oftheir sales and marketing team (Chaykowski, 2017).” The use of data analyticscan aid a business exponentially, and that could be either an increase or adecrease but again, due to their marketing strategies, both Instagram andFacebook have seen an increase. Instagram businesses are capable of generatinga larger increase and following with the use of hashtags.
Hashtags leadcustomers to product advertisement. Theycan analyze and view their own stats, with the use of the business IG accounts.These accounts provide stats via Insight Labs. These variables can be valuableanalytical tools. Tools that range from the number of times an advertisementpost has been liked, the number of times it’s been commented on, and thedemographics of these responses. Responses such as geographical location,gender and age. Analytics can give the business much needed information topursue a certain demographic more intensely than others.
Advertising onInstagram makes good business sense mainly because Instagram accommodates thebudget of the smaller advertisers by giving them options. Options to decide toutilize a paid campaign after analyzing the performance of other posts first(Chaykowski, 2017). A failed ad campaign means a loss of revenue, so this is aperk that has become very beneficial for Instagram. This contrasts Facebook’sadvertising platform for business pages. This platform limits exposure andadvertisement unless you pay for boosting your advertisement. Studies have shownthat if a business page boosts their advertising platform, which in this case istheir Facebook page, it reaches more users than if they were trying to acquiremore likes for the page.
Facebook user would have to find a business page and oncethey found it they would have to like it in order to follow its postings. Thisin comparison to a campaign advertisement ad that reaches so many moreusers. Facebook has a way for hashtagfollowings however consumers are targeted easier post directed at what’s trending.For the business owner business analytics would be a helpful tool to have. Theyhave a way to analyze page followings or advertisements and ultimately that factleads to their sales. In closing a Facebook page as wellas an Instagram account can boost interest in products and aid in sales. Thesocial media platform has a more rapid ability to spread products to customersworldwide in comparison to a traditional paper add or even a televisioncommercial.
(MOCHON, 2017)Companies such as LuLaRue utilize Facebook’s”Go Live” feature to sell and promote their items. These small businesses combinetheir goods and committed to a joint business page. This business page played hostand combined the sales of their products allowing them to offer product to awider pool of customers. In doing this the business owners have enabled each individualseller to push merchandise that they may have not be able to sell to their owncustomer base. Another example of joint networking is theRodan and Fields manufactures and multi marketing company that sells their skincare product through a network of small business owners.
Rodan and Fieldsassociates utilize the Facebook platform to advertise and sell the products.The use of joint business pages lends itself to entice sales of the products bytestimonials from real people. In turn this appeals to the average consumer. Businessanalytics have become common within the rapidly growing social media platforms.If properly analyzed and utilized the use of information retrieved such as trendsand sales could mean a larger customer and or fan base. In closing, the fact that socialmedia is driven by current trends and interests means that it could face somechallenges ahead. However, to date the use of business analytics continue toaccurately predict human dimension.