Instagram is only a few years old, but the social network is a hotbed of marketing activity. In fact, Instagram’s engagement ratio is eight times greater than other leading social networks, and the network is is a must-have channel for B2C brands in particular. Given Instagram’s elevated engagement levels, we’re all hungry to learn more about how to improve our performance on the platform. Luckily, there are tools that offer insights into Instagram analytics (including TrackMaven) so the real challenge is determining which Instagram metrics matter to marketers.
I’ve outlined six of the key metrics (quantitative and qualitative) that should be a part of your Instagram analytics reporting. These metrics are especially important to keep a close eye on as the platform continues to evolve and expand its advertising capabilities. So without further ado, here’s your guide to Instagram analytics:
1. Follower growth:
Instagram’s active user base is on the rise — and your follower base should be too. For context, the number of monthly active users on Instagram increased by about 33 percent from 300 million in December 2014 to 400 million in September 2015. Is your brand keeping up with the inflation of Instagram followers? If not, reassess your strategy for expanding your audience on the network. Or check out our industry benchmark reports to see the median Instagram audience size in your industry. Spoiler Alert: Apparel brands have the largest Instagram audiences, with a median of nearly one million followers. Insurance brands have the smallest Instagram audiences, with a median of 2,000 followers.
2. Engagement ratio:
Engagement ratio is the average number of interactions per post per 1,000 followers. It is a metric that normalizes for posting frequency and audience size so that engagement per brand can be compared. To calculate the engagement ratio, use the following formula:
Engagement Ratio = Total Interactions / Total Posts / (Total Followers/1,000)
Industry-wide,the average engagement ratio for brands on Instagram fell from a high of 34 to a low of 22 over the past year.
That decline reflects the increasing competition to stand out in the Instagram feed: Across 2015, the number of brands posting Instagram photos each month nearly doubled, growing 91 percent year-over-year. The number of brands posting Instagram videos, grew even more dramatically, rising 139 percent year-over-year.
Measuring your engagement ratio on Instagram versus competitive companies helps marketers track relative performance on the network.
3. Relative impact:
In Trackmaven, relative impact calculates how well a particular post did in comparison to the average performance of your other posts from the past 30 days, based on the engagement ratio. Keeping track of this metric allows you to quickly identify top-performing Instagram content so you can do more of what’s working (and less of what isn’t).
4. Referral traffic, particularly from Instagram ads:
More Instagram engagement certainly signals improvements in brand awareness, but ultimately most companies want more eyes on their website (and more conversions too). In Google Analytics, marketers can easily track the volume of referral traffic from social networks like Instagram. And if your Instagram engagement is increasing, but your Instagram referral traffic isn’t, consider changing the calls-to-action in your posts to drive web visits.
As Instagram continues expanding its ad platform, marketers can expect organic engagement to continue to decrease, more to the level of the already monetized Facebook. More and more, marketers will have to pay to play on Instagram. Although increased ad revenue may be a sign that you should expect your organic reach to decline, it also signals the increasing relevancy of the platform. Marketers should use referral traffic to make sure they spend effectively and sponsor the right stories.
5. Frequency of posts compared to engagement:
The average number of Instagram pictures posted per brand increased by 11 percent across 2015, while the average number of Instagram videos posted per brand grew 29 percent. Despite this growth in video content on Instagram, brands post only a handful of Instagram videos per month, but posting Instagram photos is a near daily activity (24.2 to 26.9 per month on average).
To determine the optimal post frequency for your brand on Instagram, keep an eye on your engagement ratio (#2). As long as the engagement ratio continues to increase, you can post more frequently. But if the engagement ratio decreases, you’ve reached your posting frequency limit.
6. Follower demographics:
When establishing digital marketing metrics, remember that it’s important to determine who you are reaching. Are you finding your target audience, developing relationships with key influencers, and connecting with current and potential customers?
Instead of focusing only on increases in followers, pay particular attention to which accounts engage with your brand on social media and their level of engagement, including who is sharing and liking your posts, contributing comments or mentions, and clicking on links.
The future of Instagram analytics
As Instagram continues to evolve, and particularly as paid promotion becomes more prevalent, keep a close eye on engagement metrics and referrals to make sure you’re spending your money on ads effectively. Continue to track and revise your goals as Instagram grows.