More consumers are buying goods and services based on what they see in their Instagram feed, recent trends suggest.
The shift is happening for good reason, and it’s forcing companies to adapt. A new study by TapInfluence found that social media influence marketing is 11 times more effective than banner ads, meaning that social media accounts with wide followings, so-called “influencers,” are coveted by companies looking to reach plugged-in consumers.
The dynamic means that advertising dollars are increasingly flowing to social media-based campaigns. According to a 2015 study by eMarketer, Instagram’s global mobile ad revenues are expected to close in on nearly $3 billion by 2017. That figure would accounting for over 10 percent of the revenues of Facebook, its parent company.
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