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1. Created By @the_pritha_mistry
2nd August 2018
Instagram Case Study
Index
● Background Check and Quick Facts
❖ STP
❖ SWAT
● More about Product
● Time Line
● Business Model
● Growth Tragectory
● Case Study -1
● Case Study -2
● Case Study -3
● Case Study -4
● Case Study -5
● Bibliography

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Background Check and Quick Facts:
● It is a free image sharing app that help you share your live updates, photos, videos etc
with the world.
● Started as BurBn by Kevin System and Mike Krieger in 2010.
● Initial seed funding of 500K USD from Baseline Ventures and Andreessen Horowitz.
● Instagram had nearly Zero Revenue prior acquisition by Facebook.
Instagram STP
Segment People wanting to share photos & videos online
Target Group All internet users
Positioning
Instagram is a fast, beautiful and fun way to share your life with
friends and family
Instagram SWOT Analysis

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Strengths
1. Ease of posting across multiple platforms (Facebook,
Twitter, Google+, etc.)
2. User base – 300+ Million monthly active users
3. Innovation – First social media exclusively for photos
4. Can leverage the strengths of its parent company
‘Facebook’-deep pockets
5. High quality employees
6. Availability of filters helps users to make their photos unique,
event stylized
7. Direct Messaging (Instagram Direct) – instead of messaging
to the world, you can message and even in a way engage in a
picture conversation directly.
8. Strong backing of parent company
Weaknesses
1. Privacy has been raised as an issue by certain users
2. Many similar social media platforms means limited market
share growth
Opportunities
1. Product extension can boost presence
2. Increasing internet penetration & number of smartphone
users
3. Rapid technological development
4. More advertising & marketing can increase product
awareness
Threats
1. Entry barriers are less and hence other players can easily
enter
2. Continuous innovation is needed to engage users; else
users get bored of this application
3. Intense competition

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Instagram Competition
Competitors
1. Pinterest
2. Mobli
3. 23Snaps
4. Hipstomatic
More about Product
Instagram, because of its increasing user-base, is an essential element of Facebook’s
revenue model. Mobile has been a growing segment of Facebook’s advertising,
accounting for 84% of ad revenues in the third quarter of 2016, compared to 78% from
the year-ago quarter and Instagram has seen a huge growth in the number of
advertisers. There is also an increase in the number of users of Instagram which have
attracted more advertisers on board.
It introduced sponsored post advertising (just like Facebook’s) targeting US users in
November 2013 and UK users in September 2014. There was no stopping after that.
Many new features were introduced, many features were copied and advertisements
were included in many of them.
❖ Selling Eyeballs and timeshare.
❖ Most of the money from Ad sales.
Click to Website
Website
Conversation
Mobile App
Engagement
Mobile App Installs
Send People to
important sections
of your website
Get people to take
specific ations on
your website
Get more activity on
your mobile app
Get people to install your
mobile app

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Video Views
Reach and
Frequency
Page Post
Engagement
Mass Awareness
Tell a story using
Video
Achieve predictable
reach and greater
control over message
frequency
Get people to engage
with your ad
Drive mass awarenessto
board audience with
guarenteed impressions
and placement in top ad
position of Instagram's
feed
Business Model of Instagram can be divided into 3 types:
- Image Ads
- Video Ads
- Carousel Ads

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Timeline:
October 3, 2013 – Instagram Announced to add advertising to its platform.
December 12, 2013 – Introduced Direct, a feature that allows users to send photos to specific
people.
August 2, 2016 – Introduced Stories, a feature copied from Snapchat, which let users upload
photos and videos as their Instagram story which automatically expires after 24 hours.
November 21, 2016 – Launched live video feature which allows users to broadcast live on
Instagram for up to an hour.
February 22, 2017 – Released Instagram carousel which enables users to post up to ten
pictures or videos in the same post.
March 20, 2018 – Launched shopping on Instagram that made businesses to tag products on
photos, making it easier for users to find, evaluate and track relevant products on Instagram.
June 21, 2018 – Launched IGTV, a mobile TV application similar to Youtube.

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Business Model:

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Case Study 1 - Bloom & Wild
❖ Bloom & Wild used the Power Editor feature to create their Instagram ads. First, they
took their existing email list and created a lookalike audience from it.
❖ Next, they tested their ad images by running a few low dollar campaigns posting like
they normally would. However now they would compare the engagement between the
photos and whichever photo received the most attention would be used for their main ad
campaign.
❖ They found that videos performed best for them and had the highest conversion rate.
❖ After selecting their winning ad they scaled up the ad spend and added a strong call to
action on their ads.

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The Results
“With the use of Instagram ads, Bloom & Wild increased their bouquet orders by 62%, and saw
many new customers commenting on their account and buying bouquets from their shop.”
This is a great example of how a small business can be successful on Instagram. They didn’t
have the money that a large corporation would. They simply created a small, but engaged
following on Instagram.
Case Study 2 - Burt’s Bees

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❖ Burt’s Bees is a great example of small dollar physical products benefiting from
Instagram Ads.
❖ To promote their new collection, known as the lip crayon line, Burt’s Bees looked to
Instagram Ads. Their goal was to expand awareness and increase ad recall within the
beauty community.
❖ They knew they could find a booming beauty environment on Instagram and looked to
seize the growing attention of their market by showing off their products in a original,
natural way.
❖ First, they targeted females between 18 & 24 in the United States. Then they delivered
ads to them that showcased their product and corresponded with their theme of “Delight
Your Lips.”
The Results
Burt’s saw a 5pt lift in product awareness and a 16pt lift in ad recall. I guess on “selfie central”
it’s pretty important to know what you have on your lips.

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Case Study 3 - Mercedes-Benz
Pretty much anyone who can drive has heard of Mercedes-Benz. So what was their goal when
running Instagram ads? The well known car company was launching the GLA, which was their
first compact SUV. They wanted to gain exposure in the new category.
First, they decided they would create engaging ads on both Instagram and Facebook for their
followers and those that would see the ads. Then they reached out to photographers and asked
them the question, “What would you pack in your GLA?” the photographers would take a picture

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of what they would bring, but the items would be laid on custom GLA cargo mat to show how
versatile the vehicle was for a weekend trip.
Here are some of the photos they posted as ads:
The Results
The automobile company saw a 14pt lift in Mercedes-Benz Instagram ads, a 54% increase in
website visits from Instagram and Facebook branding ads, a 580% increase in website visits
when Facebook and Instagram ads were combined with Facebook direct response ads.

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Case Study 4 - PHILADELPHIA

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Another example of a large brand utilizing the platform is Philadelphia (cheese). What type of
boosts could a cheese company see? Philadelphia was one of the first companies or brands in
Australia to use the Instagram advertising.
Philadelphia used very creative pictures to capture the hearts of foodies everywhere. Who can
resist a food photo on Instagram? Check out one of their ad photos below.
Their goals were to target the 25-40 year old females that were prone to throw a casual get
together party. The pictures helped show what you could do with the Philadelphia cream cheese
to help those party planners. Looks like cream cheese is used for more than just bagels!
The Results
Philadelphia saw an 8pt lift in message association, an 8pt lift in purchase intent and most
notably they saw a 41% sales uplift.

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Case Study 5 - LEVI’S

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Lastly we have this classic American retailer. Levi’s focus has been the idea of living in the
moment, and they express that in their photos. It helps that they have become the most
recognized jeans in the world, but you would think because of that they wouldn’t see a benefit
from the Instagram ads, wrong!
Levi was one of the first advertisers on Instagram. In the first 9 days their ads featured people
wearing the iconic clothing while sharing a beautiful moment outdoors
They focused the ads on people within the age group of 18-34 in the U.S. They emphasized for
their marketing campaign that users would see the image twice on average, and the picture
would be put in the user’s feed only once.
The Results
For their ad campaign Levi’s reached 7.4 million people in the U.S and they saw a 24pt lift in ad
recall. That’s a huge reach targeting millennials.

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Bibliography:
● https://socialmediaweek.org/blog/2015/11/instagram-case-studies-learn/
● https://www.feedough.com/how-does-instagram-make-money-instagram-
revenue-model/

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● https://unicornomy.com/how-does-instagram-make-money-how-
instagram-makes-money-business-model/
● https://www.mbaskool.com/brandguide/it-technology/13615-
instagram.html
*Most of the content is gathered from the content online. Hence correctness of data worthy content is subjected to correctness in
the real article.