It registers consumer engagement 18 times that of Facebook and 48 times that of Twitter, according to the latest report from L2 Think Tank.
The “Intelligence Report: Social Platforms” found that the visual component of Instagram has helped the platform grow to 100 million users while the average luxury brand has 100,000 followers. Other visual platforms such as Vine, Pinterest, and YouTube have grown significantly and continue to be platforms where brands can deeply engage consumers.
“For all the mindshare that it occupies, social media ultimately drives very little e-commerce, less than 0.25 percent, and site traffic, less than 3 percent, for prestige brands,” said Danielle Bailey, research lead for L2 Think Tank in New York.
“This is not to say that social media is irrelevant, but it requires a shift in how brands approach and measure their success on these platforms,” she said.
“Rather than direct attribution, social media shines in the secondary effects such as search, customer service, CRM, retargeting, engagement, and brand building.”