How Brands Are Capitalizing on Instagram to Promote Their Business

It’s inevitable. While watching that television show you need to catch up on, a commercial pops up of a celebrity promoting a product that is geared towards you.

Celebrity endorsements are nothing new to viewers at home. From watching Selena Gomez promote Pantene with her beautiful long locks to hearing Peyton Manning sing the Nationwide theme song during your NFL game, brands are not only capitalizing on the television, but they are also using the power of social media too!

With over 700 million users on Instagram, brands are taking advantage of millennials in the social space to promote their products.  

 

From the small screen to the big screen, millennials tend to “idolize” their favorite stars.  For example, The Kardashians have become a huge brand worldwide as a reality television family.  Kim Kardashian has over 101 million followers on Instagram.  So, when she posts a photo on Instagram using a supplement to grow her hair, her 101 million followers are attracted and inspired to try that product she is using because it’s “Kim Kardashian” – so it must work!

 

 

Another example is ABC Bachelorette reality star Ashley Rosenbaum.  Ashley and her husband, JP, the winner of the show have partnered with Hello Fresh, Teami Blends Tea, and 310 Shake Protein to promote their products to earn money.

 

 

Celebrities will often post an Instagram photo, along with a short testimonial and a special code just for their fans who follow them. Brand value added by celebrities is immediate, often creating brand loyalty, which drives additional sales. 

According to Forbes Magazine, studies have shown that advertisements that use a celebrity, about whom many people already have positive feelings and impulses, grab an audience’s attention more easily than a standard ad. Just one endorsement can spell an increase in sales by 4%, almost instantaneously, thus the reason to leverage stars on Instagram.

According to “The Drum,” over 90% of celebrity endorsements on Instagram are in violation of rules around influencer marketing. A study has found just 7% of sponsored content posted by the most followed celebrities on Instagram was compliant with guidelines and regulations set by the Federal Trade Commission (FTC).

“The FTC requests that ambassadors make it clear and apparent when posts have a “material connection” a brand – a rule that applies whether the product or service has been provided as a freebie or as part of a paid for deal. Ads should be signposted with a clear tag like #ad and feature high up in the post, i.e., not cut off in a caption. Tagging the brand is not acceptable, neither is the use of #sp or #partner instead of sponsored.”

So, be mindful of the Federal Trade Commission laws before considering using a micro or macro celebrity in your social advertising.

A simple evaluation of your social media channels for your business could make a huge impact. For additional social-savvy tips and tricks, follow our blog!