Instagram is Reinventing Itself. What Does it Mean for Brands?

While some are calling it the end of social media as we know it, it’s really just more of the same – literally. Instagram’s announcement that it will prioritize video and no longer wants to be thought of as the “square photo-sharing app” will actually make it more similar to competitors like TikTok. Brands however, will need to understand the marketing opportunities and obstacles these changes bring and evolve their use of the platform accordingly.

More videos can mean higher organic reach – Instagram’s research shows people use the platform primarily for entertainment, hence the launch of its new full screen, immersive video experience and reduced focus on static photos. As with similar changes in the past, Instagram’s algorithm will reward brands that amplify their new focus. In this case, posting more videos can boost visibility. Notably, videos that are of low quality or include “watermarks” from other platforms (ex. TikTok) will be deprioritized. With videos becoming the default format for storytelling, brands will need to collaborate with those creators who have mastered the medium.

Creators are increasingly important for engagement and e-commerce – The success of TikTok’s integration with Shopify shows the power of full-screen video to convert sales and turn social into more of a full-funnel solution. Instagram’s embrace of video combined with its new native affiliate tool (and larger global user base than TikTok) means creators will likely be using videos more often to earn commissions from social commerce. Videos from creators and influencers are inherently more engaging to consumers than brand-produced content, increasing their impact on reach and revenue.

Rise of niche content – In addition to a video-first approach, users can expect more “recommendations” from Instagram unrelated to anything they previously showed interest in. User reactions quickly train the algorithm and fuel discovery. As a result, Instagram will become more of an interest network and less of a social network (much like TikTok). The benefit here is that it empowers brands to create content that consumers are truly passionate about and authentically connect with, deepening relationships and building brand equity. This “nichification” is reflective of what is happening across digital as a whole and part of what makes TikTok so addictive, having fueled the rise of Alt-toks and trends like #dreamcore, #darkacademia, and #cottagecore among others.

Brands can easily create their own group and include a range of public or private channels. These can be used for everything from hyping new releases, to crowdsourcing UGC, to always-on focus groups that users can drop into at their leisure. Low latency video and audio create intimate, real-time connections and deeper dialogs. Discord’s new “stage channels” allow up to 1000 users to participate in group audio conversations, similar to Clubhouse but more customizable and baked into the brand community.

As digital continues to evolve and consumers find new ways to engage, Discord has the potential to become the missing link that connects community to commerce and content. In these early days, innovative brands should take the opportunity to get to know their young fans better and see what they're really like, outside the algorithm.

EPISODE 4

Embracing Cancel Culture: Featuring Malia Baker

In Episode 4 of Kids in Control, 14-year-old actress, artist, and activist Malia Baker talks about why we should embrace cancel culture, what celebrities today look for in brand partnerships and why Twitter is one of Gen Z’s favorite social platforms.

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In collaboration with Advertising Week, we invite you to listen to Kids In Control where we explore the world of Gen-Z culture through the lens of its most prolific thought leaders.

Created for future-forward marketing professionals, this series taps into the Gen Z mindset that is changing how we work, play, shop and socialize. From brand loyalty and influencer marketing to social media and social justice, Kids In Control offers insights into the changemakers themselves through candid conversations.

This article originally appeared in the July 20th, 2021 issue of Moving Image & Content’s agency newsletter. Subscribe here.