At yesterday’s press briefing, L2 Founder Scott Galloway and Head of Research Maureen Mullen presented key findings from L2’s upcoming Instagram Report created in partnership with Olapic. a company that brings user-generated photos to brands’ e-commerce pages. The study benchmarks 259 brands from the beauty, fashion, retail, hotels and watches and jewelry industry. The report will be one of the biggest Instagram report for brands to date.
Galloway deemed Instagram “the world’s most powerful platform”—more so than Facebook and WeChat. In 2013, the platform experienced 66% growth—nearly double Twitter’s 36% according to Neilson. Instagram also has an interaction rates 15x higher than Facebook and is projected to surpass twitter in users by 2015.
Mullen said “Facebook has lost its edge against Instagram” partially due to Instagram’s younger demographic, which is primarily below the age of 35 and female. Where Instagram truly outperforms other social media platforms is in active usage and engagement. Scott emphasized that this makes Instagram an extremely desirable channel for brands. Maureen elaborated on this point using Michael Kors as a brand case. Kors decreased the percentage of yearly sales spent on media from 7% in 2009 to 1.5% in 2012. However, their presence and engagement on Instagram has continued to grow as a marketing outlet (their first sponsored post on November 1st, 2013 reached 16.5 million people and generated 34,000 new followers within the first 18 hours and received more than 230,000 likes and over 1,750 comments). On the ecommerce front, Olapic founder Pau Sabria used Lancome’s #bareselfie Campaign to illustrate the power of user generated content to create social commerce that generates sales—50% of online DreamTone product sales derived from the social commerce gallery created by Olapic.
Instagram will continue to be an essential platform for brand marketers, especially for brands that can tap into the user-generated content to harness social commerce. The full Instagram Report is scheduled for release on February 5th.