Report

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A Market Analysis for
(Instagram)
(Daejaunte Marshall-Valerio)
Full Sail University
Project & Portfolio II: Business and Marketing
(8-26-2019)

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EXECUTIVE SUMMARY
In this report we will analyze the market in regard to Instagram and its parent company
Facebook. This report includes features that Instagram has used to reach different audiences
along with methods they should use in order to continue expanding. We speak on their incomes
and projections to show what to expect from Instagram. This report shows that Instagram is one
of the most well-known social media applications and has an audience that rises from thirteen
and up. Recommendations include; adding group video chat, lengthening video post options, and
showing who is saving your content.

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OBJECTIVE
Based off of research of the current market, interpret ways for Instagram to expand its
number of interactive users and increase revenue.
RESEARCH METHODOLOGY
The information gathered in this report is mostly external with both qualitative and
quantitative characteristics all retrieved from the internet. The research was compiled
in August of 2019. The information stems from 2013-2019. “Instagram contributed between 8B
to 9B to Facebook’s revenue in 2018 up 70% from last year” (Rioja,2019).
(unsplash,2018)
RESEARCH AND KEY FINDINGS

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For people who are interested in lifestyle and connecting with people all across the world
Instagram is a social media application that allows people to share photos, videos, stories, market
their content, and even go live for their followers. Instagram targets socially aware people with
smartphones from ages thirteen and up. Instagram gives businesspeople a platform to market
themselves along with promotion campaigns to reach a broader audience. Even politicians use
the app to connect with their audience and gain exposure. “Instagram has become our MP’s
preferred platform to show off their human side (Hinsliff, 2018). “The faster Instagram grows the
more serious politicians are taking it (Hinsliff, 2018). Politicians are using the app to do relatable
things so people can develop a connection with them. “Visually literal young activist are
meanwhile using Instagram to campaign on issues from gun control in the us to period poverty”
(Hinsliff, 2018). Instagram also aims to be a safe space for people of all genders, races, and
sexualities. Instagram now allows people to input a custom gender for their accounts, to allow
transgenders or people in general to express themselves the way they see fit. “Before Instagram
users could only select male, female, or prefer not to say “(Barr, 2019). This shows Instagram is
socially aware and intends to give everyone a comfortable safe place to communicate and
express themselves. Instagram also generates revenue by allowing businesses to promote
themselves through the app. “Advertisers are spending billions on influence marketing to reach a
more engaged, targeted Instagram audience” (Routley, 2017). “There are some 800 million users
on this platform, and 80% of them follow at least one business” (Campbell-Dollaghan, 2018).
“Over 70% of brands indicate they are using influencer marketing (Routley, 2018). With the
number of users and business on Instagram increasing this means more revenue generated into
our economy.” There have been reports of illegal business being conducted on Instagram such as
drug deals. “Liking a post by one of the thousands of dealer accounts results in the user’s feed
being flooded by similar accounts” (McDonnell, 2018). This makes it easier for people to buy

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and/or sell their drug of choice through Instagram. They can’t always tell if every drug-related
post is being used to sell these products, but they are working on fixing this issue. Not all illegal
activity goes unnoticed. For instance, “One convicted felon in Florida allegedly posted selfies of
himself brandishing guns…so that was enough to get him arrested” (Tsay, 2017).
(emarketer,2018)
CONCLUSIONS
Instagram is continuously growing and is one of the most well-known applications in its
market. It connects people allowing them to stay up to date with our ever-changing world. It also
allows businesses to grow their following and helps to ensure consumers never miss anything.
Allowing you to share photos, videos, stories, and interact live with your audience Instagram
offers diverse ways to promote and interact with brands along with connecting and networking
with other across the world. Instagram is projected to grow as they to upgrade the experience
and make it more user-friendly.

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RECOMMENDATIONS
Based off of research Instagram should add a group video chat feature that allows you to video
chat with multiple people at once. Not many applications do this so this would set Instagram
apart from its competitors. Instagram should also allow you to post videos longer than sixty
seconds. Often times users have longer content to display and have to settle with choosing only
sixty seconds to display. This would benefit Instagram by attracting people who enjoy uploading
full videos to their fans ands followers. By 2020 Instagram should allow you to see who saves
you photos to their collection. Instagram allows you to save other photos, so it is only fair if the
creator knows when you did it.
(idownloadblog,2017)

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REFERENCES
Barr, S. (2019, June 11). Instagram celebrates Pride Month by introducing more inclusive gender
options. Retrieved August 18, 2019, from https://www.independent.co.uk/life-style/instagram-
gender-inclusive-options-pride-month-trans-lgbt-a8953111.html
Hinsliff, G. (2019, March 10). How Instagram became the politicians' playground. Retrieved
August 18, 2019, from https://www.theguardian.com/technology/2019/mar/10/how-instagram-
became-the-politicians-playground
McDonell-Parry, A. (2018, September 28). Instagram Is Being Used to Sell Drugs. Retrieved
August 18, 2019, from https://www.rollingstone.com/culture/culture-news/instagram-used-sell-
drugs-730958/
Routley, N. (2017, November 17). The Influence of Instagram. Retrieved August 18, 2019, from
https://www.visualcapitalist.com/influence-of-instagram/
Scheer, R., & Moss, D. (2018, February 19). The Environmental Conscience of Instagram.
Retrieved August 18, 2019, from https://earthtalk.org/environmental-conscience-instagram/
Tsay, J. (2013, January 20). 5 Ways Instagram Can Lead to Legal Trouble. Retrieved August 18,
2019, from https://blogs.findlaw.com/law_and_life/2013/12/5-ways-instagram-can-lead-to-legal-
trouble.html